What is CBDC and why are countries considering it now? : vim

What is CBDC and why are countries considering it now?


What is CBDC and why are countries considering it now?
Wednesday, 21 July 2021
Right now multiple countries around the world are considering establishing a central bank digital currency (CBDC). This increased interest may have been spurred on by the decline in cash use during the pandemic, as well as the growing popularity of digital payments.
Cash got a bad name in 2020
Early negative messaging around Covid-19 and cash use could be linked to a significant fall in cash use worldwide last year. In its 2020 Global Payments Report, McKinsey predicted a 4% to 5% decline in cash payments by the end of the year. That figure is four to five times the annual decrease in cash payments, observed by McKinsey in previous reports.

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