What Is Digital Currency, And How Does It Work?
The crypto revolution is pushing the U.S. government to consider its own digital currency. The U.S. Federal Reserve released a study open for public comment for 120 days analyzing whether the U.S. should have its own digital money. More than 84 countries are either exploring or in advanced stages of deploying national digital currencies, including China, Australia, Mexico, the U.S., the U.K., and many others.
Despite the ups and downs of the crypto market and its risks, digital values, cryptocurrencies, stable coins, and NFTs are here to stay. Companies like Tesla, Google, and Paypal are now operating with crypto, to mention just some of a long list. However, studies show that most users don’t fully understand what digital values are and how they work despite increased popularity.
Related: People Are Falling For Crypto Scams, Here’s What Government Plans To Do
The U.S. proposal is to create a Central Bank Digital Currency (CBDC). A digital currency is any currency that only exists in a digital electronic form. For example, while U.S. dollars exist both as a physical currency that people can hold in their hands and as an electronic currency that can show up in their account balance, digital currency never takes a physical form. CBDCs have lots of pros and some cons, which are being debated.
The U.S. digital currency would be issued, regulated and overseen by the U.S. Federal Reserve. This means that the value of the U.S. dollar would support the digital currency. Like stable coins, CBCDs are not intended to be volatile, jumping up or down with market movements. Most cryptocurrencies are not accepted as payment everywhere, so users have to exchange them before using them. But because national banks regulate CBCDs, they are
Read more on screenrant.com
