Central Bank Digital Currencies – A step towards a cashless society?

The cryptocurrencies like Bitcoins, Ethereum, and Ripple etc are becoming quite popular among the investors. The success of these currencies has prompted some of the leading financial institutions to adopt this technology. Some nations are also investing in research of currency system similar to the blockchain network.  The main aim of this research is to implement a system that will complement the existing currency system but will offer the advantages of the decentralized system. The new form of money that is in pipeline is called Central Bank Digital Currencies (CBDC’s). The introduction of this form of legal tender will change the face of the current banking and financial system.

Why Central Bank Digital Currencies?

Cost is the primary consideration to move towards the digital platform. Handling physical cash like bank notes, Coins etc involve a lot of costs. The cost of producing, distributing, replacing and handling can be eliminated with the introduction of digital cash.

The possibility of hoarding cash and other anonymous transactions can be stopped completely as the network has an irreversible record of all the transactions.

The transaction costs can also be reduced or eliminated as the payment and receipt happen directly between the users of the network.

Highly secure networks- Since this technology works on encryption, it ensures that the personal data of the users are secure. The fact that private keys known only to the people involved in a particular transaction make this system impregnable for an outsider.

Is it the end of the cash economy?

Eliminating cash from the economy is not a feasible option right now. Not everyone has access to bank and bank accounts. Payment and receipt systems that happen on the electronic medium is not something everybody would be able to adopt with 100% compliance. There is a good size of the population who still do not have access to computers or smartphones.  So the cashless economy is still a distant dream and this new technology can reduce the cash transactions to a great extent.

The Introduction of the CBDC’s will change the two-tiered banking system. Thus the blockchain technology will create efficient and improved means of fund transfer. The technology that made cryptocurrencies popular and valuable is sure to offer benefits to the banking sector as well. Crypto CFD trader is a legit online trading tool that deals with the cryptocurrencies. The answer to the question is it a safe website is yes and users will believe it once they read the reviews of this website.