The financial system needs a change, but what kind?

financial system

The financial system needs a change. If you’ve been following our articles long enough, you know that there are various alternatives to the fiat currencies we know today. Many of these alternatives are digital. Central banks are trying to issue their own digital forms of their currencies. But could that be a good solution?

Why it matters

If you are interested in cryptocurrencies, you know that this is a digital form of money that can be kept in your mobile digital wallet, which is basically a code. Central bank digital currencies (CBDCs) could operate on a similar principle. Basically, you would not be clients of the bank of your choice, but clients of the central bank that would send money directly to your wallet using the application. Such a system would replace the existing, well-established system of paying, receiving and transacting money. Financial system that we know now will become outdated, but it could be hard to built a replacement.

What you can hear

It is well known that China is already working hard on their own CBDC. They are now in the testing phase and everything seems to be going very well. Information can be heard from the US that Fedcoin is a big topic, and the head of Fed says that this is one of the most important things for the US now. The financial system is slowly becoming digital. But the digital currency system is already working around the world.

What it could mean

Basically, nothing will change for those, who own and know how to operate a smartphone or pay with a mobile phone. However, there are still people in the world who reject technology and prefer the paper money they are used to. Therefore, it will not be easy to design and implement a system that works for everyone and is user-friendly. If there are already many people in the world without access to banking services, it is quite possible that this number will just move among other people. The financial system should be open for everyone.

What you can do

If you want to learn more about digital currencies and be ahead of such a future, you still have time to explore all the alternatives that today’s world has to offer, including digital currencies. The financial system is evolving and it wouldn’t be good to miss it.

Source: cnn.iprima.cz

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