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"World Digital Currency" generally refers to the concept of a global digital currency that transcends national borders and is often decentralized in nature. The most prominent example of such a currency is Bitcoin, which was created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. Bitcoin operates on a decentralized ledger called the blockchain, which records all transactions across a network of computers.
While Bitcoin is the most well-known digital currency, there are many others, often referred to as "cryptocurrencies." These include Ethereum, Ripple (XRP), Litecoin, and many more. Each cryptocurrency operates on its own underlying technology and has its own unique features and purposes.
The idea of a world digital currency has garnered attention for its potential to streamline international transactions, reduce transaction costs, and provide financial services to populations without access to traditional banking systems. However, concerns such as regulatory issues, volatility, security, and scalability still surround the widespread adoption of digital currencies on a global scale.
Central banks of various countries have also been exploring the concept of Central Bank Digital Currencies (CBDCs), which are digital versions of fiat currencies issued and regulated by a central bank. These CBDCs are distinct from cryptocurrencies like Bitcoin in that they are centralized and controlled by a governing authority, making them potentially more stable and less volatile.