The future monetary system Flashcards
What are some issues with cryptocurrencies that hinder their integration into the monetary system?
Cryptocurrencies face challenges such as volatility, security risks, regulatory ambiguity, scalability issues, environmental impact concerns, and limited acceptance, which impede their integration into the monetary system.
How can the benefits of cryptocurrency be implemented in a future monetary system?
The benefits of cryptocurrency, such as enhanced adaptability and increased efficiency, can be leveraged by building upon a system provided by central banks. This can involve utilizing blockchain technology and decentralized finance (DeFi) principles.
What role would central banks play in the future monetary system?
Central banks would serve as the foundation of the future monetary system by issuing Central Bank Digital Currencies (CBDCs), providing final confirmation of payments, ensuring liquidity, regulating the system, and enhancing trust and stability through oversight.
