Central Bank Digital Currencies and Their Role in the Financial System

[Lenipiw]

What are CBDCs and the risks they possess, and how might they reshape our economies?
Central bank digital currencies are a digital representation of a country’s fiat currency. They are effectively a government-issued cryptocurrency designed to replace the traditional, physical form of fiat currencies.

The term CBDC is broad because its implementation involves several critical decisions on the part of an issuing central bank. The primary decision is whether a CBDC should be a general-purpose in that it’s available to be used by the general population. If not, then the issuing authority may decide to make it available for “wholesale” transactions, which means the CBDC is only used for settlements between banks. Finally, a CBDC could also only be used among central banks.
Visit here: https://cointelegraph.com/news/central-bank-digital-currencies-and-their-role-in-the-financial-system

[Delgado]

It is likely that the stablecoins of the central banks of states will be as widely used as their non-digital counterpart. For a digitized currency, the same principle of circulation should apply as for an ordinary currency: the more often such currency is used, the more benefit it will bring to the economy of this state. Therefore, it makes no sense to restrict the circulation of digitized cryptocurrencies.