Reduced printing and management costs

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This is a real and ongoing concern, especially in emerging countries: reducing the costs of printing and managing money in order to minimize the crimes associated with this activity. With CBDCs, it is possible to drastically reduce the amount of money used to print and distribute banknotes, as well as the cost of policies to reduce currency counterfeiting.

In addition to these concerns, the fact that we are moving towards an increasingly technological society requires innovation on the part of the government. The idea is that, in the future, with central bank digital currencies, it will be possible to carry out transactions with increasing security, without the need for paper, a card or even a password — which is a major advance from a security point of view.

Will digital currencies replace physical money?
Not in the short and medium term. And this is for several reasons, from the jamaica phone number list to mature and implement the idea to the fact that most of the world is not ready for it due to the immense social disparity in which we find ourselves. Therefore, although many central banks around the world are developing their CBDCs, they will not be implemented any time soon — let alone replace physical currencies!

Most central banks are not yet ready to launch a CBDC in the coming years, with the exception of the People's Bank of China, which has been studying digital currency and has been developing its CBDC project since 2014. Another institution that is also ahead of the rest of the world is the Central Bank of Sweden.

Still, banks need to prepare for a hybrid model, because if these institutions do not produce a digital currency that is useful to their population, they run the risk of losing monetary control over a large part of the people living in their country.

Precisely for this reason, governments and central banks are accelerating the studies and development of their CBDCs. Here in Brazil, the Central Bank is studying the possibility of launching its digital currency for retail between 2022 and 2023. It is speculated that the digital real could be used to pay for products and services, make transfers and even make payments abroad.

Are digital currencies the future?
As you have seen throughout this article, digital currencies are not just the future — they are already part of our present. They are included in the global reality of both government financial institutions, such as central banks, which are developing their own digital currencies, and private institutions, which have cryptocurrencies.

Facebook also has a digital currency, Diem. Want to learn more about it? Check out our article and learn how it was designed, the main differences between it and other cryptocurrencies, and its main impacts on the market.