Monetaroy Policy Moves Digital: Will the Motility Receive It More Logically?

Main Article Content

Aram Mohammed-Amin Qadir
Ayad Abdulrahman Semin

Abstract

This research explains the monetary policy in an old way and the new one which we called it digital, it explains the pros and cons of the old and new way of monetary policy and which country is using which kind of it, and the reason behind using each type of it. While digitalization has long altered the functioning of monetary systems, it has only just begun to profoundly alter their structure. Developed economies quickly downplay the value of cash and, in some circumstances, want to go completely cashless in the near future. Digital currencies have likewise emerged. When it comes to their percentage of financial transactions, the first generation of cryptocurrencies like Bitcoin, Ethereum, and Ripple have not shown to be relevant. This was caused by structural flaws that resulted in high volatility, capacity constraints, unpredictable transaction costs, and low levels of transparency, all of which diminished their potential to perform the essential tasks of money and, consequently, their appeal as a medium of exchange. Stable coins, which have newly joined the market, were created particularly to address the issue of volatility by connecting digital money to an underlying group of assets. The fact that they may be issued by a central authority and depend to some extent on third-party institutions is another critical difference between them and the first generation of cryptocurrencies.

Article Details

Section
Articles