Greetings.

These days many countries have been opposing cryptocurrency adoption and many just want to get it banned, which is very difficult to make possible as cryptocurrencies are decentralized which is also a reason they want it to get banned.

BUT

Many countries do want to promote blockchain technology so for that rather than making Bitcoin or ETH or some other cryptocurrency as legal tender, many of them are releasing a cryptocurrency that would be backed by the central authority of that nation, going to be known as

CBDCs

Just related to this topic, Steem4Bloggers community is conducting a challenge for the Steem community.

• Firstly, thank you for organizing such contests.
• Secondly, it's a great step toward the awareness of CBDCs.

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Let's now go through the questions shared!

Question 1

What is your understanding of CBDC (Central Bank Digital Currency)?

As per my knowledge it's a cryptocurrency, that would be working the same way as normal cryptocurrencies do but the major difference between them would be that they would be backed by a Central Authority as the name suggests just like the normal currency of the nation.

Example: China is considered the first major economy that has launched CBDC.
China has a national currency _Chinese Yuan_.
China's CBDC also known as renminbi or digital Yuan or e-CNY has the same value and characteristics as of its currency, Chinese Yuan.

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Question 2

Is your country has it's own CBDC? If not, then share your opinion about it's presence in your country.

I live in India and yet there is no CBDC present here issued by the government. As per the government, they would introduce one between the year 2023-2024. This is what the finance minister of India addressed in one of her speeches. I am waiting to that how the people of India would react to that and how the Indian economy too. This is going to be interesting, ain't that?

Nirmala Sitharaman, Finance minister of India.

Source

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Question 3

Importance of CBDC in the current financial system.

I feel there can be many use cases of CBDCs in the financial system. Some of them are as follows:

• The transactions that normal cryptocurrencies do anonymously, centralized currency won't be doing that.
• That would be just a form of Digital Fiat, there can be many use cases of this in the whole country's economy.
• Might help in introducing new policies which would later resulting in the betterment of the society/nation.

Question 4

What do you think, is there a need for CBDC in your country or not?

Hell yes, we should have it but one thing I still want is to get Bitcoin as a legal tender too. There is no serious need right now for a CBDC, to be honest, but if it comes then I would like to see how the economy will get affected due to that. Also as mentioned earlier, it might be able to help in the betterment of the economy.

Source

Example: In El Salvador, even though they have accepted Bitcoin not a CBDC but we could see the growth rate economy has been increasing. Yet the bear market might have hit them hard but I think as the market would recover, they will be looking ahead to good days.

Question 5

State in your opinion, what could be the Advantages and Disadvantages of CBDCs.

CBDCs have many advantages but possible disadvantages too, let them discuss now.

Advantages of CBDC	Disadvantages of CBDC
Backed by a central authority	They do not justify the true role of cryptocurrency
Might Help in the growth of the economy	If not implemented securely, could disturb the country's financial situation.
Other cryptos are pretty volatile, this would act as a stable coin	Possibility of low user adoption in underdeveloped countries
Works on blockchain technology	Once implemented, many challenges would occur to make CBDC implementation successful.
Might help in the increment of growth in the world of technology	People who use Technology type things very rarely wouldn't going to use it

Question 6

Is there a global need for CBDCs? Share your opinion on that.

In my opinion, if it can make communication and trade easier between countries, then it might be the best in the list of one of the best inventions ever happened in the world of finance. If this is possible then yes, we have a need.

But if it doesn't connect to this criteria then my answer is probably. If this isn't what CBDCs could do then we are already having applications like Paytm, Google pay, Paypal, Amazon pay, etc. for that use. If it can make money transfer easily abroad then it is a need. Otherwise, I am not much positive about their use case at the global level.

Still, it would be interesting to see when CBDCs get released/introduced in various countries and how would they effect the country at a national level and then at a global level.

Lastly, I would like to invite @starrchris, @sikakonn and @mondraye to participate in the competition, it would be fun!

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15% Beneficiary to @hive-109435

Thank you

Have an amazing rest of your day.