What is money? Money is debt. Money is credit. A promise to pay. A way to store and transfer the value of effort across distance or time. Inscribed on all Rupee notes is “I promise to pay the bearer, the sum of..” . No one doubts the ability of the Reserve Bank of India to pay, so we keep our wealth in Rupees.
The good thing would be operating expense of global financial transfer would be reduced. But this would destabilize the banks and would cause chaos in small countries(people might switch to foreign currency).
CBDCs: Central Bank digital currencies
The good thing would be operating expense of global financial transfer would be reduced. But this would destabilize the banks and would cause chaos in small countries(people might switch to foreign currency).