Future of Money




is the digital form of the plutocrat issued by the central bank. Those in the process are supported by the central bank and represent the plutocrats, who are the direct responsibility of the central bank. Several central banks are experimenting with the CBDC, albeit with the utmost caution in the early stages, says Prasad. China, Japan, Sweden and Nigeria have launched CBDC exams and the Bank of England and the European Central Bank are preparing their own exams.

The Federal Reserve is reluctant to start implicitly developing the CBDC, but President Jerome Powell has said the central bank is fully exploring the possibility. The technology of each CBDC depends on the preferences of the country and its central bank. This differs from the blockchain behind popular decentralised cryptocurrencies, such as bitcoin, because the CBDC would control one reality, the central bank. “With protection that ensures confidentiality, no central bank would refrain from the audibility and traceability of transactions necessary to restrict the use of its digital currency for lawful purposes,” he says.


“The business case of stablecoins is that they provide cheap and seamlessly available digital payments within and outside public borders,” says Prasad. In fact, the Biden administration recently told Congress that when stable stocks are regulated, they can “promote more agile, efficient, and inclusive payment options.” But stablecoins have caught the attention of U. legislators as an implicit problem of fiscal stability, many of which are at the centre of controversy.

Wider use of stablecoins as a medium of exchange could benefit “poor and non-banks, as well as small businesses similar to road traders,” says Prasad.


Their value is in most cases derived from power and demand. Bitcoin, for illustration, was launched in 2009 with the intention of operating as a peer-to-peer fiscal system. This could be useful in a number of situations, especially for those who need to shoot plutocrats into a family overseas. Yet most cryptocurrencies are truly unpredictable, which could hinder their long-term success as a medium of exchange, says Prasad.

Due to this uncertainty, cryptocurrencies are unlikely to be used for day trading.

Disadvantages of cashless payments

While Prasad says he believes the future of the plutocrats will be cashless, he admits that dependence on digital payments will not inevitably lead to a perfect system. “The rich may be better able than others to take advantage of new investment opportunities and reap additional benefits,” says Prasad. “The end of cash is on the horizon and the time has come for a wide-ranging public debate about what is happening,” says Prasad.