---
title: "Why do countries want digital currency?"  
description: "Why do countries want digital currency?"  
author: "Sandra Emily"  
published: 2022-05-23  
canonical: https://answers.mindstick.com/qa/97577/why-do-countries-want-digital-currency  
category: "troubleshooting"  
tags: ["troubleshooting", "digital currency"]  
reading_time: 1 minute  

---

# Why do countries want digital currency?

Why do countries 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

- A **CBDC** also gives a country's central bank the tools it needs to undertake monetary policies that promote stability, growth, and inflation management.
- [Digital](https://www.mindstick.com/articles/85590/how-to-create-a-productive-digital-workspace) currencies issued by central banks would also minimise the dangers associated with utilising digital currencies in their current form. Cryptocurrencies are extremely volatile, with their value fluctuating continuously.
- This unpredictability might put many households in financial distress and jeopardise an economy's general stability. CBDCs would provide a stable means of transferring digital [currency](https://www.mindstick.com/news/2105/rbi-has-released-a-concept-note-on-central-bank-digital-currency-and-digital-rupee) to households, consumers, and companies if they were backed by the government and administered by a central bank.

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**Read More: [Can cryptocurrencies fail?](https://answers.mindstick.com/qa/97446/can-cryptocurrencies-fail)**

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Original Source: https://answers.mindstick.com/qa/97577/why-do-countries-want-digital-currency

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