Flourish Health & Wellbeing eMag - Latest Edition - Flipbook - Page 41
gital Currencies
by Con Barbayannis, CPA
The way we use money is changing, and one of the biggest shifts happening right now is the rise of
Central Bank Digital Currencies (CBDCs). These are basically digital versions of traditional money issued
by central banks. Unlike cryptocurrencies like Bitcoin, which are decentralised, CBDCs are controlled by
governments—just like physical cash.
So, what does this mean for everyday people? Could CBDCs make transactions easier and safer? Or
are they a step toward financial surveillance that threatens our privacy?
CBDCs: The Next Evolution of Money?
The Pros: How CBDCs Could Make Life Easier
Governments worldwide are moving towards
digital currencies. As of early 2024, over 130
countries are ac琀椀vely exploring or developing
CBDCs, with some already rolling them out.
The idea is to modernise payment systems,
improve e昀케ciency, and provide a state-backed
alterna琀椀ve to private digital payment pla琀昀orms.
CBDCs come with some clear poten琀椀al bene昀椀ts:
Here’s why governments are keen on CBDCs:
• Faster and cheaper transac琀椀ons – No need
for middlemen like banks or credit card
companies, reducing fees and delays.
• More 昀椀nancial inclusion – Helps people
without bank accounts access digital
payments easily.
• Stronger monetary control – Governments
can directly regulate money supply and
payments, reducing 昀椀nancial crime and fraud.
2. Lower Transac琀椀on Costs
Because CBDCs cut out intermediaries like
payment processors and banks, fees could be
lower. That means cheaper transac琀椀ons for
businesses and consumers.
But not everyone is convinced that this is a
good thing.
4. A Government-Backed Alterna琀椀ve to
Cryptocurrencies
Right now, people are using private digital
currencies like Bitcoin. CBDCs would give
people a state-backed digital currency that’s
more stable and secure.
1. Instant, 24/7 Transac琀椀ons
Imagine sending money to someone instantly,
with no delays, even on weekends or public
holidays. That’s the promise of CBDCs—no need
to wait for bank transfers or payment processing.
3. More Secure Digital Payments
Unlike tradi琀椀onal online banking, where fraud
and hacking are concerns, CBDCs could be safer
due to government-backed security features.
