Analysis on the Advantages and Disadvantages of Central Bank Digital CurrencyBitcoin was born in 2009 and its design philosophy allows people to store, send and receive digital cash without the involvement of financial intermediaries. Since the advent of Bitcoin, the field of cryptocurrency has undergone tremendous changes. Nowadays, there are many kinds of digital currencies and various kinds of tokens, and even central banks are rushing to launch digital currencies based on blockchain. Here we put a briefly analysis on its advantages and disadvantages.
Benefits of the central bank digital currency:
*stimulating economic growth;
*more effective monetary policy;
*easy distribution and access;
* lowering transaction costs;
* reducing reliance on the US dollar;
*evading sanctions.
Defects of the central bank digital currency:
*taxpayers bear implementation costs;
*no effective solution to the scalability of blockchain;
*potential financial privacy loss for citizens.
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