| University | Singapore University of Social Science (SUSS) |
| Subject | FIN383: Financial Technologies and Innovations |
Question 2
The move towards digital payments has led many regulators to toy with the idea of creating a digital currency. Many central banks and governments around the world are exploring the use of central bank-issued digital currencies (CBDC) to replace fiat currencies/cash totally.
(a) Explain what a CBDC is and examine the differences between CBDC and
cryptocurrencies.
(b) With the rapid use of technology and digitalization in our daily lives, do you think the introduction of CBDC into our modern world is an inevitable development? Discuss.
Employ and make good use of examples, existing events, and/or suitable statistics to augment your discussion
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