Cryptocurrencies of the future –

Cryptocurrencies are one of the great examples of how technology is changing the world of finance. Bitcoin, for example, passed To be known to a minority who hoped to decentralize the world of finance To be a common business asset.

But perhaps the great disruption that cryptocurrencies will bring was not caused by decentralization, quite the contrary, Which is that central banks are creating their own digital currencies. This will allow savers to deposit their money directly into the central bank.

These government cryptocurrencies, on the plus side, Pretending to be the new incarnation of money and improve financial performance, but on the downside, they can also Centralization of economic power in the United StatesChanging geopolitics and changing how capital is distributed.

Cryptocurrency will be the next experiment in the financial world and aims to be the biggest innovation in the sector in recent years

The idea is simple: instead of having a checking account with a bank, you can have a direct account with the central bank, in addition to saving card fees and/or account maintenance, I will guarantee that your funds are fully covered by the state itself.

This change in everyday finances may seem far from happening, but The truth is, it’s closer than we think. More than 50 monetary authorities, which account for the majority of global GDP, operate their cryptocurrencies. The Bahamas has issued digital money, China has begun a trial of its own electronic yuan with 500,000 citizens, the European Union has a plan to obtain a virtual euro in 2025, the United Kingdom has formed a working group and the United States is immersed in the process. From a virtual electronic dollar. El Salvador will use its cryptocurrency as the only reference for the local economy in two weeks.

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One of the reasons why central banks launched cryptocurrency is because For fear of losing control. Today, to implement their monetary policies, they need the existing financial systems, those provided by banks, and if these systems move to decentralized environments, such as Bitcoin, They will have trouble managing business cycles, as well as injecting cash during a crisis period.

Another reason is The promise of a better financial system, As the widespread use of these government cryptocurrencies would reduce operating expenses and make financial resources accessible to any citizen of the world. It also expands the tools of governments, allowing them to make immediate payments to citizens or lower real interest rates below zero. For users, a free, secure and comprehensive payment system is a great incentive.

These are cryptomoneys It also poses risks to the system. They can destroy banks because if they lose customer deposits, they will need another way to fund the loans they make. If the banks disappear, the loans to companies will have to be provided directly by the central banks, and this may cause politicians to influence the granting of loans.

very would lead to instability in small or developing countries, Its citizens can choose to open an account in a central bank with a strong currency and keep the local currencies in limbo, with the financial implications this might entail.

It is true that government cryptocurrencies, like any innovation, will bring both opportunities and risks. It is indicative that the Chinese, who are known for their appreciation of controlling everything else, limit the size of the electronic yuan.

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Cryptocurrencies will be the next experience in the financial world They claim to be the biggest innovation the sector has seen in recent years. It is necessary to see the evolution and whether central banks are really willing to create these cryptocurrencies or just want to position them so that they do not lose their power.

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