What will happen if each country has its own national digital currency

[Ahtisham Tahir]

Cryptocurrency is decentralized, that is, it has no owner. Digital currency has an owner and this is the state. Is it possible to take control of the owners of cryptocurrency? Partially! Is it possible to take control of the owners of digital currencies? Fully! So what would happen if every nation replaced their existing fiat money with digital currency?

Nature
If all countries switched from paper money to their own national digital currency, then there would be less paper money. Printing of paper media will decrease or stop completely. And since less or no paper money is required, the number of trees cut down will decrease. This could help reduce the negative effects of climate change.

Job loss
One of the negative consequences of the formation of a digital currency in the role of a state currency is the loss of jobs by people who were behind the "printing press".

Simplicity and lightness
Digital assets are very simple and easy to use. Now hardly anyone wants to carry paper money in their wallets. This will lead to the cashless society that many countries are striving for. Moreover, everyone with a smartphone can use the digital analog of fiat everywhere. Huge budget savings Printing on paper presses is very costly, but digital undefined currencies, all these costs can be reduced to a minimum.

Stability
Yes, it is unlikely that the current cryptocurrency can be called a standard of stability. But we forget about the so-called stable coins, which for the most part are tied to something physical and stable (dollar or gold). A way out of this situation can be found if the state digital currency is tied to the current fiat in each country in a ratio of 1:1.

 

[Jasz]

Bitcoin’s popularity continues to rise with each passing day, and it is not just an online phenomenon. A lot of brick-and-mortar businesses are starting to accept bitcoin as a form of digital payment, from home improvement stores to travel agencies.

With the potential for cryptocurrencies to become more widely used in the future, some governments have started issuing their own digital currencies. Estonia has already done this, and other countries could follow suit.

However, there are also concerns about whether a national digital currency will be able to succeed. Some experts believe that it might not work out well.

The world is moving towards a cashless society. In Sweden, only 15% of all payments are made in cash. There are many advantages of a cashless or less cash society.

To start with, it will make the whole transaction process easier and safer. Credit card system is already very safe, but cash makes transactions much easier to crack.

It will also help the government control money laundering and other illegal activities like tax evasion.

This move will also help the government track all transactions and find people who evade taxes.

However, there are some disadvantages of shifting to digital currency from paper

 

[Sotherefore]

Losing of jobs may not really be something to consider because these people who are working with the Central Bank of a particular country will be reabsorbed into the financial management and other opportunities in the financial sectors , I don't really think this will in any way affect the employment rate in a particular country or nation. But the only function of a digital currency as I understand is that it will help to facilitate easier transaction within countries.

It is even estimated that 90% of the world banks in all countries of the world has started doing one research or the other concerning how digital currency will have an effect and improve the economy of their country which is likely possible that in the future a lot of the financial institution of every countries will see the need for the adoption of digital currency.

It is only countries with developed economy and good financial capability will be able to make the best use of this amazing opportunities because our country invented the digital currency but ever since the invention of this currency I have never seen any progress and development this has done in improving the economy of our country.

 

[Ithedicious]

I don't really know the function of this digital currency that each countries of the world are trying to establish because there was a time my country was trying to establish the digital currency and ever since the invention of digital currency I've never been able to see the real good use of the digital currency they were just spending millions of naira to establish . Which obviously indicate that it was completely a misplaced priority because that is not really the interests of the people and the digital currency they were trying to establish has not at any time improve the country in any way as they were just saying up and down.

I won't really have any problem concerning digital currency but if any countries of the world tries to establish a digital currency, they have to first of all sees the potential and what these currency will offer to the country first before they can make an attempt to establish it , Because it would be a waste of time to just establish something that will not even help the country in any way.

The only function I know is that it can help facilitate transaction across different borders within a short period of time.

 

[Jasmine]

You need to understand one basic thing about national digital currency. Commonly called Central Bank Digital Currency, of CBDC in short is a digital version of the fiat currency of the currency which is pegged as 1:1 value, for example, if Japan decides to launch CBDC, it the value of 1 CBDC will be exactly 1 Yen (Japanese currency). So, how does this actually happen. CBDC is created by depositing equal amount of fiat money in a bank account and locking the funds. For example, if Japanese government wants to release 10 million CBDC, it will have to deposit 10 million Yet in bank account and lock the fund. This is possible only when there is paper money, because central bank cannot create a deposit account for yet unless it has yet. Therefore, paper money will still be required. Well paper money will not be used because there will be CBDC in work, therefore the life of paper money will be higher, however, the government will still have to print money. Furthermore, if the public is using CBDC, they will need internet connection and high speed internet. If internet is not available in all location, how can this be possible.