The Case For Central Bank Digital Currencies (CBDCs)

INTRODUCTION

A new chapter in the history of money has begun. Countries are seeking to preserve fundamental parts of their existing monetary system while experimenting with new digital forms of money. So, there is a struggle for the financial system going on right now, and new technology is set to revolutionise the way we use money forever. Throughout human history, whenever an established system faced up against a digital challenger, the digital challenger has always triumphed, despite initial opposition. For example, Blockbuster and other traditional methods of renting movies have been displaced by streaming platforms such as Netflix. The same can be said regarding Kodak's bankruptcy as a result of its failure to adapt to new technology which ushered in digital photography. This begs the question of why money will be any different.