CBDCs and private digital currencies:
CBDCs are seen as a way for central banks to keep central bank currencies relevant in a world where the use of physical money is declining. CBDCs may pose a competitive challenge to decentralized cryptocurrencies, but their primary purpose is not to eliminate private digital currencies.
The balance between cash, financial inclusion and consumer protection:
The decline of cash, financial inclusion, and the lack of consumer protection in digital asset markets are important factors to consider. Achieving this balance will take several years, and trials have not yet begun.
Privacy and Regulatory Challenges of Digital Currencies:
In all digital currencies, balancing privacy and necessary regulation is a challenge. The adoption of digital currencies like the digital dollar has social decision-making implications for the anonymity and privacy of business transactions.