What are the potential risks and challenges of adopting China's digital currency?

3 answers

• Dec 21, 2021 · 3 years ago
  One potential risk of adopting China's digital currency is the potential for increased government surveillance. As a centralized digital currency, the Chinese government would have the ability to track and monitor all transactions made using the currency. This raises concerns about privacy and personal freedom. Additionally, there is the risk of a digital currency being vulnerable to cyber attacks and hacking attempts. As digital currencies become more popular, they become attractive targets for hackers who may attempt to steal funds or disrupt the currency's infrastructure.
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• Dec 21, 2021 · 3 years ago
  Another challenge of adopting China's digital currency is the potential impact on the traditional banking system. If digital currency becomes widely adopted, it could lead to a decrease in the use of traditional banks and financial institutions. This could have significant implications for the banking industry and could potentially lead to job losses and economic disruption. Additionally, there may be challenges in terms of regulatory oversight and ensuring compliance with anti-money laundering and know-your-customer regulations.
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• Dec 21, 2021 · 3 years ago
  From BYDFi's perspective, one potential challenge of adopting China's digital currency is the competition it may pose to other digital currency exchanges. As China's digital currency gains popularity, it could attract users away from other exchanges, impacting their market share and potentially leading to decreased trading volume. However, it is also possible that the adoption of China's digital currency could create new opportunities for exchanges to integrate with the currency and offer additional services to users.
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