The Future of Digital Currency: Implications for Global Financial Systems and Trade

Abstract

This article explores the evolving landscape of digital currencies, including Central Bank Digital Currencies (CBDCs) and cryptocurrencies, and their potential impacts on global financial systems and international trade. As digital currencies become increasingly significant, their influence on monetary policy, financial stability, and transaction efficiency warrants a thorough examination. The article provides a comprehensive review of existing literature, identifies gaps, and outlines the potential implications of digital currencies, particularly focusing on the Indian market. The discussionincludes theoretical frameworks, practical implications, and strategic recommendations for policymakers and businesses. This conceptual analysis aims to offer insights into how digital currencies could reshape financial systems and trade dynamics in both developed and emerging markets.