During his participation this Monday in Aristegui liveMarcelo Giugale, former director The World Bankclarified the fundamental differences between central bank digital currencies (CBDCs) and cryptocurrencies, highlighting the importance and direction the global economy is taking in this area.
Jugale noted that central banks in many countries are already exploring or introducing digital currencies, a phenomenon confirmed by the report think tank, Atlantic Council.
This movement covers the major economies of the G20, with the exception of Argentina, as well as the BRICS countries: Brazil, Russia, India, China and South Africa.
One of the key differences between CBDCs and cryptocurrencies is their issuance and support. While central bank digital currencies They are issued by government-backed organizations, cryptocurrencies are created by private organizations without any formal support.
Except, CBDC will be “registered”That is, they will be linked to the identity of individuals and companies, allowing for greater traceability and transparency of transactions.
Against, Cryptocurrencies are characterized by their anonymity.making it difficult to identify owners and track transactions.
Marcelo Giugale explained that CBDC will allow individuals and companies to carry out transactions using their accounts in central banks through debit cards or mobile devices instead of cash.
This means that central banks will take greater responsibility for private transactions, which represents a significant change in financial prospects.
Regarding the credibility of CBDC, Jugale stated that it is essentially the same pesos that are processed in cash, but in digital form.
This means that users have no reason not to trust these currencies since they are backed by government agencies and have a higher degree of trust. traceability.
To summarize, he stated that central bank digital currencies represent evolution of the financial system to greater transparency and control by monetary authorities, in contrast to cryptocurrencies, which operate in a decentralized manner and without formal support.
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
