Issue: № 7, 2024
Doi: https://doi.org/10.37634/efp.2024.7.6
The purpose of the paper is to identify the reasons for the implementation of CBDCs, to clarify their characteristics, differences and similarities with cybercurrencies, the opportunities they provide for different categories of users and the monetary policy of the state, as well as to identify the benefits and threats arising from their implementation and to identify the main opportunities to avoid the threats caused by the implementation of CBDCs. The methodological and theoretical basis of the paper is based on the scientific works of foreign and domestic scientists, analytical and statistical information on the impact of CBDC on society, the population, and the state’s monetary policy, as well as regulations created to regulate monetary policy. During the study, the methods of comparative and empirical analysis and synthesis, as well as a systematic approach were used. Digital technologies are part of progress, and they are gradually penetrating all areas of the economy. This process also has an impact on monetary policy through the introduction of new payment systems and mechanisms, as well as currencies. At the present stage, cybercurrencies have become widespread, and with it, many governments have begun to study or develop their own cybercurrencies – CBDCs. Such currencies can be retail, wholesale, and hybrid depending on their application. Along with a significant number of advantages that these currencies bring, they also have a number of disadvantages and possible threats to both users and the state’s monetary policy. The paper has led to the conclusion that by implementation of new technologies, it is important to maintain a balance between them and traditional financial instruments. It is also important to ensure that there is an alternative in case of emergencies and to avoid governments manipulating the population’s dependence on electronic money and the array of personal information associated with it.
Keywords : CBDC, cybercurrencies, monetary policy, finance, financial security
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