THE EVOLUTION OF CENTRAL BANK DIGITAL CURRENCIES AND THEIR AFFECT ON THE GLOBAL ECONOMY
Ibrahim M. I. KHARIS1, Adriana GIURGIU2
1PhD student, Doctoral School of Economics and International Business, The Bucharest University of Economic Studies (ASE București), Bucharest, Romania
2Doctoral School of Economics and International Business, The Bucharest University of Economic Studies (ASE București), Bucharest, Romania; Department of International Business, Faculty of Economic Sciences, University of Oradea, Oradea, Romania
ibrahimkhrais1@gmail.com (Corresponding author)
adrianagiurgiu@gmail.com
Abstract: This study paper looks at the possibility of central bank digital currencies (CBDCs) as the next step in the evolution of money, and as they have gotten lately a lot of attention from lawmakers, researchers, and financial institutions. This is because technology is changing quickly and financial systems are becoming more and more digital. The goal of this study is to look into the advantages and disadvantages of CBDCs, as well as their ability to change and impact financial systems. The first part of the study gives a broad review of CBDCs, explaining what their main features are and why they were created. Using current case studies, and the views of experts, the paper gives a critical evaluation of the benefits of CBDCs. It looks at how giving unbanked and under banked people access to digital payments and banking services could improve financial inclusion. Also, it looks at whether the use of CBDCs could make banking deals faster, cheaper, and more open. But the paper also talks about the problems and risks that come with putting CBDCs into place, about things like privacy, data protection, the effects on monetary policy, and how the current financial environment could be changed. In order to make a fair analysis, the study takes into account the views of central banks, financial companies, regulatory bodies, and customers, among others. In the end, the goal of this paper is to add to the current discussion about CBDCs by giving a thorough look at how they could be the next step in the evolution of money. It talks about the ways in which CBDCs can change things, as well as the issues and factors that need to be dealt with for them to work. This study paper aims to help lawmakers and other interested parties figure out how to deal with the changing environment of digital currencies and monetary systems by putting light on the possible benefits, challenges, and effects of CBDCs.
Keywords: Cryptocurrency; Central Bank Digital Currencies; Global economy; monetary policy; financial systems.
