Digital Currency: Development of Cryptocurrency

Development of Digital Currency: A Case Study of European Central Bank

The aim is to examine the development of digital currency by ECB (European Central Bank) as a substitute to cash as the region feels that it is falling behind Asia and USA in the international payment markets. The currency will enable users to keep utilizing money even if physical cash is not used any longer. Therefore, it is important to assess costs, benefits, and forms of digital currency in order to investigate other central banks and ECB to comprehend financial intermediation consequences and policy domains including investor protection, legal certainty, compliance with anti-money laundering recruitments, and financial stability.

Issuance of Digital Currency by Central Banks:  A Focus on People’s Bank of China

The aim is to analyze the issuance of a digital version of currency by central banks to keep up with rapidly digitalizing economy. The People’s Bank of China has started online applications and e-wallets regarding the issuance of digital currency. Users can download a digital wallet, fill it with money, and then use it for receiving and making payments directly with another person who also possesses a digital wallet. Therefore, it is significant to look into the issuance of digital currency by PBOC. This will allow users to convert between digital money and cash. Furthermore, they can make remittances and payments, and check accounts.  This will be useful in tracking money electronically and combating money laundering and other illegal activities.

Evolution of Digital Currency: Implications and Motivations for Central Banks

Cryptocurrencies have specifically affected practices, functions, and operations of central banks and financial systems. This has the potential to completely eliminate cash and replace a range of physical currencies. Due to this, concerns have been raised among central banks. Central banks feel the need to issue digital currency for use by the general public. Therefore, it is important to discuss and consider possible implications and motivations for central banks to issue a cryptocurrency and set a benchmark that is similar to the features of cash so that financial stability, monetary policy, and payment system can be sustained and made effective.

Role of Digital Currencies in Transferring Money without the Intervention of Banks

The aim is to analyze how private cryptocurrencies can assist in moving money without the interference of any organization. Digital currencies assist in preventing users from spending their balances more than once. Which makes it difficult for banks to intervene. Cryptocurrency including bitcoin use open source software and peer-to-peer networks to create the finality of transactions. This further stops double-spending along with creating an equilibrium. Which provides value to computerized trade markets in which there is no involvement of agents or brokers. Therefore, it is important to examine digital currencies in transferring money to foreign countries without the interference of any agents or brokers.

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