Digital Currencies and how they affect International Economic Stability

Essay from the year 2023 in the subject Business economics - Miscellaneous, grade: A, Mahatma Gandhi University (NIRMALA COLLEGE, MUVATTUPUZHA), course: ECONOMICS, language: English, abstract: This thesis examines the rise of digital currencies-cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs)-and their implications for global economic stability. The study delves into the origins and evolution of these currencies, exploring their potential to enhance financial inclusion and improve transaction efficiency. However, the research also highlights the risks they pose to monetary policy, financial stability, and the broader economic landscape. Through case studies and analysis, the thesis recommends regulatory approaches to balance innovation with stability, contributing to the understanding of how digital currencies are reshaping the global financial system.