Georgia introduces digital money

According to a recent and interesting announcement, the National Bank of Georgia, NBG, is preparing to introduce a new official currency in 2022, Digital Larit. Georgia is not the only country planning to introduce its own blockchain-based digital money, but Georgia may be one of the first; thus, the experience he has gained can serve as important information for others. Incidentally, there is already a country where digital money using blockchain technology has become an official means of payment: BitCoint has been used in El Salvador, digital yuan has been in place for some time in a test project in the Bahamas, and the Sand Dollar is used by the Bahamas verified version.

Digital money (CBDC) issued and controlled by a country’s central bank is, according to some experts, not real cryptocurrency, but a thoughtful version of cash. There is something in this, too, because although the operational basis is the same code as, say, BitCoint, digital lorit will not be minable and exchange rate fluctuations will be eliminated by the fact that the central bank has a controlling role.

Based on all this, the very good question is whether the digital lori will compete for what it offers a real alternative: for example, it will be difficult to compete with non-state-controlled cryptocurrencies, as one of their main attractions is that they are completely independent. It is planned that the money will be an alternative to traditional solutions, not only being cheaper, but also faster to use. The claim about costs will certainly be true, but the speed advantage is by no means certain – immediate transfers can be solved, at least in the traditional banking system.

However, according to NBG, digital money will not only be available during working hours, but will always be available, and it is interesting that they promise that you will be able to pay with it without an internet connection. It will be legal tender, but it is not yet clear whether its acceptance will be mandatory or whether merchants can choose whether or not to use the option. The government hopes that digital money – given that it will be available anywhere in the world, and even Bitcoin Era, a Bitcoin Code or it can be traded on other online brokerage platforms – it will also draw investors ’attention to the country more than before.

In addition to Georgia, the US, the EU (at EU level) and Russia, among others, are working to introduce a digital version of existing paper-based money.

Source: by

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