In the future, there will be both public and private digital currency, which will make it easier and more inclusive for everyone to use.
We are on the cusp of major shifts in the way money and finance are seen by the general public.
Cash is unlikely to exist much longer because of the convenience of digital payments for both consumers and companies.
This reduces the usage of cash for illegal transactions as well.
Cryptocurrencies are also attracting the attention of policymakers and authorities because of their connection with financial crime. If currency regulations are toughened, this might undermine the currencies’ potential adoption and thus their investment value.
Central bank digital currencies are emerging as a new form of digital currency being developed by central banks around the world (CBDC).
To put it another way, a central bank-issued CBDC is a digital money.
It has become clear to the world’s central banks that they’ll need to provide an alternate solution to cryptocurrencies and stablecoins or risk losing the future of money.
Virtual ledgers, such as blockchain, are likely to be used by central bank digital currencies because of the high level of security they provide.
Digital currencies will continue to gain popularity in the future, especially if central banks introduce their own digital currency.
For a wide number of industries, blockchain can be used to settle transactions safely or provide a perspective of asset ownership that is transparent.
As a result of the emergence of cryptocurrencies and blockchains, a new breed of “decentralized finance” (DeFi) companies and projects have emerged.
People can use DeFi to access financial services like borrowing, lending, and trading without having to go through a bank or other organization.
While DeFi and crypto payments have become more popular, there have been questions about how consumers will be protected, how volatile the markets will be, and how well central banks can use monetary policy to help people.
Cryptocurrencies have evolved to become a trillion-dollar new tech having the capability to transform the world financial system in a matter of years.
Source: Crenov8