Steem Engagement Challenge|S4W2| Explanation of CBDC By @eberechieme

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What Is Your Understanding About CBDC (central bank digital currency)

Digital Currency are currencies which are not like physical money but can be transferred, received or traded with. They are tokens which sometimes have higyh values even more than our local fiat currently 💲💲
They can also be referred to as cryptocurrency.

Bank itself is a place where valuables are stored to avoid damage or lost. And the valuables we can keep with banks are something like gold, silver, diamond, money and other things. While a central bank of a country is the bank that prints and puts money into circulation.
So the CBDC is also a digital form of a country's fiat currency that is fully backed up and supported by the government so as to enhance effective and less fee Cross-country transactions and payment for goods and services

Is Your Country Has Its Own CBDC? If Not, Share Your Opinion About Its Presence In Your Country

Yeah, my country Nigeria. We have our own CBDC with the introduction of eNaira which brings about more people engaging in the financial system or service

The Central Bank Of Nigeria (CBN) officially launched the "eNaira"- a central bank digital currency (CBDC) - on October 25, 2021. This is the second CBDC fully open to the public after the Bahamas source

And this brings about financial engagement since it's not everyone that has bank account so with your mobile device or laptop you can engage in the financial system

Importance Of CBDC In The Financial System

Yeah, the CBDC is very important in the financial system, which means that in terms of finance it it very vital and relevant. Cause it helps the to build and maintain good financial status of a country, that is stable economy.

• it brings about more people engaging with the financial system

• it is a new upgrade of a country's technology and calls for enlightenment of the people, and for those you are unable to have or register their personal bank accounts

• it is less expensive both in enter - state and enter - country transaction fees when compelled to the local fiat money or direct bank transactions

• it also helps a country to monitor its financial engagement and money flow

• it is easy to use and more secured too

What Do You Think If It Is The Need Of Your Country Or Not

We needde it cause a lot of people are involved in cross-country transactions and businesses, and this people do encire a lot of fees to be able to make some certain transactions.
And many too in the country who are into goods and services and they does that from one state to another anf when it gets to the payment scene it calls for much fees too
While many people don't have bank accounts and are not engaging fully in the financial system

So with this Central Bank Digital Currency now everyone can easily have access to and engage in the financial system with their mobile device or bank enrollment. And transmissions are now less expensive than before cause the CBDC takes little or no fees for transactions such as payment for good or services rendered

Advantages And Disadvantages Of CBDC

Yeah it has a lot of advantages to everyone else (Country). Cause it improves many things even the fastness, easy and less expense in transactions and payment
It also shows the adversity of a country's technology and many more advantages that it has

So as it has many advantages it also have a disadvantage
Now in reference to the eNaira which is the digital currency of my country, Nigeria

Like digital currencies elsewhere, the eNaira carries risk for monetary policy implementation, Cyber security, operational resilience, and financial integrity and stability ......, There is need to manage cyber security and operational risks associated with the eNaira source

So these are the possible disadvantages of the CBDC

Is It A Global Need? Give Your Opinion On It

Globally, the CBDC have to be considered a need. Though it has a high risk but it is more beneficial to the risk
So this should be launched in every country, globally so as to enable and enhance easy payment from the. Four corners of the earth to any where else.

Conclusion

To conclude note that
This CBDC are just the digital form of every country's fiat currency which can also be stored in the E-wallet
Many countries have launched the CBDC while many are still yet to do so
It helps to fasten transactions and payment and can be accessed with your mobile devices
So it's encouraged every country launch their's