LATESH NEWS OF CENTRAL BANK DIGITAL CURRENCY

CENTRAL BANK DIGITAL CURRENCY(CBDC) IS A ONLINE CURRENCY CREATE BY FEDERAL RESERVE BANK. IT BASED ON BLOCK CHAIN TECHNOLOGY.

blockchain technology is an innovative and promising tool with the potential to revolutionize the way we exchange value and information.

Its decentralized, secure, and transparent nature make it an attractive option for a wide range of industries, and ongoing research and development will likely lead to even more exciting applications in the future.

CBDC WILL BECOME THE ALTERNATIVE OF PHYSICAL CURRENCY AND THE CBDC IS TAKING PLACE IN BOTH PRIVATE AND PUBLIC SECTER.FEDERAL RESERVE SAYS’

IT WILL PROTECT YOUR MONEY IN A BLOCK CHAIN FORM and you can easily withdraw your money.it will backed by united state bonds this means if you buy a stable coin you will affectively subitizing united state spending. the stable coin issue is make mad money from the interest rates on the reserve this is why it’s suprising that the model does not assume.

Stable coin will earn interest but does assume that CBDC will earn interest. the model also assume that each CBDC transaction will not be automatically taxed which some thing that government have discussed extensively in their research.

LATESH NEWS OF CENTRAL BANK DIGITAL CURRENCY

Following many more complex mathematical models and even more complex calibration :the federal reserve finally break down the result they they analyzed what would happen if


the supply of digital currency in the economy increased from 18% to 26% for regular reasons .They found that this small increase in digital currency supply would make financial system less stable and therefore increase the probability of a financial crisis .

It would also caused the value of bank stock to fall which make sense given that
bank make money from investing customer deposit.

SMALL INCREASE IN DIGITAL CURRENCY SUPPLY GIVE BENEFICTS TO HOUSEHOLDS.

This is due to the a for mentioned increase in asset prices that would result from such digital currency issuance and lower level of asset price volatility due to all the extra liquidity.

this is the graph of financial system and households.

LATESH NEWS OF CENTRAL BANK DIGITAL CURRENCY

As you can see keeping the supply of digital currency close to 18% that minimize risks and maximize benefits

1.As hinted by a graphs the less digital currency there is in circulation the lower the risks are to financial stability.

  1. The higher the digital currency there is in circulation the more benefits are to households.

the financial stability risks!

CBDC will pose significant financial stability risks to be a way to justify limiting the supply of stable coin this because they state quote optimal regulation would limit the supply of digital currency when the only risks is coming from CBDC’s.

WHAT DOES IT MEANS TO CRYPTO?

The study says that the stable coin are a preferable alternative to CBDC’s .The central coin and stable coin are both controlled, this means that issues in digital currency will have the final says on all of your transactions be they stable coin issues or central bank.

THE DIGITAL ID?

Digital ID is required for CBDC’s. this why governments around the world are so focused on rolling out DIGITAL ID’s and government are focusing on crypto.

6 thoughts on “LATESH NEWS OF CENTRAL BANK DIGITAL CURRENCY

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