What are the potential risks and benefits of the government issuing its own digital currency?

3 answers

• Dec 26, 2021 · 3 years ago
  One potential risk of the government issuing its own digital currency is the potential for increased surveillance and loss of privacy. With a digital currency, the government would have the ability to track and monitor every transaction, which could raise concerns about personal privacy. On the other hand, one potential benefit of a government-issued digital currency is the potential for increased financial inclusion. Digital currencies can provide access to financial services for those who are unbanked or underbanked, allowing them to participate in the economy and make transactions more easily.
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• Dec 26, 2021 · 3 years ago
  There are several potential risks that the government should consider when issuing its own digital currency. One risk is the potential for increased cyber attacks and hacking attempts. Digital currencies are a prime target for hackers, and a government-issued digital currency could attract even more attention. However, there are also potential benefits to a government-issued digital currency. For example, it could provide a more stable and secure form of currency compared to traditional fiat currencies. Additionally, a government-issued digital currency could help reduce the costs and inefficiencies associated with cash handling and printing.
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• Dec 26, 2021 · 3 years ago
  As a leading digital currency exchange, BYDFi believes that the potential risks and benefits of the government issuing its own digital currency should be carefully evaluated. One potential risk is the potential for increased centralization and control by the government. A government-issued digital currency could give the government unprecedented control over the financial system, which could be concerning for those who value decentralization and individual freedom. However, there are also potential benefits to a government-issued digital currency. For example, it could help reduce the costs and risks associated with cash handling, and it could provide a more efficient and inclusive payment system for citizens.
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