A large number of CBDC supporters are gradually implementing the digital currency, the reason being the fast transfer of money as well as cheaper transaction costs. In addition to the benefits that this technology offers, the majority of users of banking services are not interested or distrustful of the digital currency that is slowly being formed without the consent of the population in the states. Most central banks are working on a study to justify digital money and its services. Here are some advantages and disadvantages of CBDC.

Advantages of CBDC:

1. Speed ​​of transactions,
2. Reduction of transaction costs,
3. Fast international transactions (current transactions only work with certain currencies),
4. Stimulating economic development,
5. Quick way of tax collection,
6. Better control of monetary policy,
7. Integration with new technologies and devices,
8. Reduction of illegal activities,
9. Insight into transactions,
10. Easy control and management of transactions.

Disadvantages of CBDC:

1. Lack of infrastructure,
2. Technological investment,
3. Risk of lack of funds in the bank (bank run),
4. Reduction in the number of banks,
5. Reduced competitiveness of financial services,
6. System vulnerability and cyber-attack,
7. The possibility of insight into the transactions of individuals,
8. Collection of data on consumer habits,
9. Manipulation of central banks on economic development,
10. Control of spending money,
11. Sanctions against a certain state with the help of digital currency,
12. Prohibition of spending and account blocking,
13. Locating Users,
14. Expiry date of Money.

Comparing to paper money, its advantages and disadvantages.

Advantages of paper money:

1. The possibility of saving without insight,
2. Freedom in using banknotes,
3. Without insight into transactions,
4. Without insight into the current state of money,
5. Impossibility of user manipulation,
6. Impossibility of locating the user,
7. Impossibility of controlling consumption,
8. Impossibility of confiscating banknotes,
9. Impossibility of charging for services without consent.

Disadvantages of paper money:

1. The cost of printing money,
2. Misuse of banknotes,
3. Destruction of banknotes,
4. Wear and tear of banknotes,
5. Corruption,
6. Without insight into transactions,
7. Forgery of banknotes,
8. Banknote transfer.

We cannot be passive or look critically at this technology, which has its advantages and disadvantages. This technology need to be used, in international transactions in combination with banknotes in the local state.

Hybrid System of CBDC-PM is the future of a country’s monetary policy.

Leave the freedom of choice to the common user without marketing campaigns and coercion to use CBDC. The possibility of a combination of CBDC and paper money in the local state. Using CBDC in transactions for users located outside home country is one form of protection against terrorism and money laundering.

The hybrid system of CBDC and paper money will give excellent results for those who travel outside their borders and in online trade outside their country.

CBDC-PM is a combination that will give results based on all the facts mentioned here, and as such, with certain advantages and disadvantages, it can balance all the features and benefits of using digital money combined with paper money.