๐งญ The Role of Digital Currencies in Monetary Policy
In 2025, central banks are rethinking how they control economies-partly because of digital currencies. With CBDCs (Central Bank Digital Currencies), governments can directly influence consumer spending by issuing digital cash or applying programmable interest rates.
This tool could make stimulus efforts faster and more targeted, especially during crises. Instead of waiting for commercial banks to pass money to citizens, governments can transfer funds instantly to digital wallets.
But there's a flip side: if not carefully managed, it may disrupt commercial banks and create over-reliance on central authority.
Digital currencies are giving policymakers new tools-but also new responsibilities that require careful design, transparency, and trust from the public.
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