Mentor’s comment-
- https://indianexpress.com/
article/opinion/columns/india- path-to-a-digital-rupee- 7624607/ - In the intro, mention Nigeria joining the list of countries that introduced CBDC.
- In the body mention the areas in which it can help especially in developing economies- to make domestic payments systems and cross-border remittances cheaper, faster and more efficient, and deepen financial inclusion. In challenges mention matching domestic priorities and design features, challenges posed by interest-bearing CBDC such as maintaining larger balance sheets etc.
- Conclude by mentioning the need to balance the benefits with the risks in the introduction of CBDCs.
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Siddharth
Decent attempt but points are very generic. Include a bit of technicalty.
For example..in benefits you can mention faster transmission of monetary policy in case of interest- bearing CBDCs; similarly in challenges you can mention the disadvantage- reduced role of intermediaries like bank and how it will effect them- less deposits, higher interest rates, shrinking of balance sheets etc.
Further in advantages, in 2nd point you have written bitcoins make markets volatile..but that isn’t the case..bitcoins themselves are volatile..you can frame that point better- just mention that unlike cryptocurrencies, CBDCs will be more stable. Further you can mention that it may be programmable, may offer limited pseudonymity to its holders unlike e-wallets etc. Security dimension can also be mentioned- less risk of terror financing, money laundering etc
Other points are good.
Intro, conclusion is fine- you can mention recently launched eNaira of Nigeria.
Overall, structure of the answer is fine but content can be improved. Some crucial points are missing. Go through the article above.
Keep writing. 🙂
3.5/10