Features of the Introduction of the Digital Currency of Central Banks

¹ Kadyrov Chechen State University, Grozny, Russia
² Southern Federal University, Bolshaya Sadovaya str., 105/42, 344006, Rostov-on-Don, Russia

^* Corresponding author: sazitas@mail.ru

Abstract

Due to the rapid development of network technologies and the digital economy, the public is interested in the convenience of retail payments. The demand for simplicity, security, versatility and privacy is growing day by day. Many countries, central banks or monetary policy authorities in countries and regions are closely monitoring the achievements in the development of financial technologies and, in these conditions, the digital currency is moving from theory to reality. Innovative forms of private digital money are emerging in response to changing needs that are changing the way we pay and the payment landscape more broadly. In an attempt to defend sovereignty, many countries, including Russia, are actively developing their own digital currencies, the issuers of which will be central banks. In these conditions, there is a need to study the main features of the introduction of digital currency by central banks, the advantages of the introduction and its disadvantages. This article evaluates and analyzes the consequences of the introduction of digital currency by central banks, identifies the key problems of their functioning, and develops possible solutions to these problems.