User:Sssnyder1596/Digital Currency

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There are many different systems of Digital Currency, including decentralized and centralized system. A popular centralized system is the Central Bank Digital Currency system. There are also many different reasons on why a person or establishment may decide to use a form of digital currency.

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Central Bank Digital Currencies (CBDC)

'''Central Bank Digital Currencies are a form of universally accessible digital money in a nation and hold the same value as the countries paper currency. Like cryptocurrency, CBCD's are held in the form of tokens. CBDC's are different than regular digital cash forms like in online bank accounts because CBDC's are established through the central bank within a country, with liabilities held by one's government, rather than from a commercial bank. Approximately nine countries have already established a Central Bank Digital Currency, with interest in the system increasing highly throughout the world. In these nations, CBDC's have been used as a form of exchange and a way for governments to try and prevent risks from occurring within their financial systems. '''

Why Digital Currencies Are Used

'''Digital Currencies have become popular due to their convenient nature. Many users believe digital currency allows them to transfer money quicker and in a simpler manner. Many countries have adopted forms of digital currency due to doubts in the strength of their banking systems and distrust in the state of their economy. Other users prefer digital currency due to the freedom it gives them in their spending habits. Due to the fact that regulation over digital currencies is weak, many users can go around typical rules and regulations that are upheld with fiat currencies. In times of financial predicaments within a country, digital currencies may also help protect a user's assets. '''