What is Digital Currency?

Question

Accepted Answer

Digital Currency is an umbrella term for any form of money or monetary value that exists exclusively in digital or electronic form, lacking a physical counterpart like banknotes or coins, and encompasses categories such as Central Bank Digital Currencies (CBDCs), cryptocurrencies, and stablecoins. This electronic representation of value is recorded on a distributed ledger or centralized database and is increasingly influencing global financial systems, foreign exchange markets, and the conduct of monetary policy.

Digital Currency

What is Digital Currency?

What is a Digital Currency, and how does it fundamentally differ from traditional fiat money and electronic bank balances?

How will the introduction of Central Bank Digital Currencies (CBDCs) specifically transform efficiency and risk in global Foreign Exchange (FX) markets?

What are the key monetary policy challenges and opportunities presented by the proliferation of various digital currencies, including stablecoins and decentralized cryptocurrencies?

When are major global economies expected to launch their Central Bank Digital Currencies, and what are the primary motivations driving this rapid development?

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