Can Countries Issue Crypto Money?

Can Countries Issue Crypto Money?

Central Bank digital currencies i.e. CBDCs are not a cryptocurrency like Bitcoin Because the main purpose of cryptocurrencies is to get banks, brokerage firms, and governments out of the way in financial transactions. The central bank also contradicts the concept of decentralization of cryptocurrencies due to the presence of banks and governments as intermediaries in digital currencies.

In transactions made with digital currencies, it is clear who makes the transaction because the people who make the transaction make the transactions with their real identities. KYC registration is required for transactions made in crypto coins, but this information is not shared with any authority. Since the transactions take place only within 2 parties, the people who make the transaction cannot be viewed.   Due to the fact that conventional currencies are only moved to the digital environment, digital currencies are vulnerable to cyber attacks and open to manipulation. Transactions in cryptocurrencies are much more powerful and reliable because they are blockchain-based.

CBDC i.e. Central Bank digital currencies mean the transfer of countries’ own official currencies to digital platforms. If we give an example of this system from our country, 11. According to the articles included in the Development Plan, Turkey has also started to process the digitalization of its own currency. Many countries around the world have also started to work for digital currencies. China and Russia are among the leading states in this regard. The digital yuan issued by the Central Bank of China can be used not only for gasoline or gas purchases, but also for purchases made at gas station markets.

When we want to transfer money from bank accounts to a bank in another country, we can do it with EFT process. While these transactions are taking place, unlike digital money, 3. Individuals are also partners in the transfer. If we take the deductions made on the amount you want to send and the sending time as a basis, this additional sending is eliminated with the digitalization of the coins and the transactions 3. The transfer process takes place within seconds without the need for individuals.