5.14 Disadvantages of CBDCs

  1. Privacy Concerns: The transparency and traceability of CBDC transactions raise concerns about user privacy and surveillance. Striking a balance between regulatory oversight and individual privacy rights is crucial.

  2. Technological Infrastructure: Developing robust and secure digital infrastructure capable of supporting widespread CBDC adoption is essential. Ensuring resilience against cyber threats and operational failures is paramount.

  3. Implementation Risks: The transition to CBDCs requires careful planning and coordination among stakeholders. Managing risks related to cybersecurity, financial stability, and public acceptance is critical.

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