---
title: "Why do central banks want digital currency?"  
description: "Why do central banks want digital currency?"  
author: "Sandra Emily"  
published: 2022-05-23  
canonical: https://answers.mindstick.com/qa/97567/why-do-central-banks-want-digital-currency  
category: "troubleshooting"  
tags: ["troubleshooting", "digital currency"]  
reading_time: 1 minute  

---

# Why do central banks want digital currency?

Why do [central banks](https://answers.mindstick.com/qa/105021/explain-the-role-of-central-banks) want [digital currency](https://www.mindstick.com/news/1151/binance-turkey-unit-slapped-with-try-8-million-for-violations-of-digital-currency-laws)?

## Answers

### Answer by Hitesh Vohra

- **Central banks** must issue [currency](https://www.mindstick.com/news/2105/rbi-has-released-a-concept-note-on-central-bank-digital-currency-and-digital-rupee) and supervise wholesale and retail digital payments to ensure financial stability, stable pricing, and safe and efficient payments.
- With a greater reliance on the private sector for payments and money production, central banks are stepping up their efforts to develop an alternative to cash, possibly re-establishing their role in the money production and payments eco-system by developing something other than just money as a means of payment, such as a digital version of cash with value-added features.

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**Read More: [Is digital money better than paper money?](https://answers.mindstick.com/qa/97562/is-digital-money-better-than-paper-money)**


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Original Source: https://answers.mindstick.com/qa/97567/why-do-central-banks-want-digital-currency

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