📋 Group Discussion (GD) Analysis Guide

🌍 Topic: Should countries adopt a global digital currency standard?

🌐 Introduction

• Context Setting: As digital transactions dominate globally, the idea of a universal digital currency standard gains traction, leveraging blockchain advancements and Central Bank Digital Currencies (CBDCs).
• Background: With Bitcoin and CBDCs shaping the financial landscape, a global digital currency could streamline trade but raises concerns about sovereignty, cybersecurity, and equitable implementation.

📊 Quick Facts & Key Statistics

• Global Cryptocurrency Market: Valued at $1.2 trillion (2023), with Bitcoin holding 48% market share and 420 million users worldwide.
• Digital Transactions: Predicted to exceed 1.3 trillion by 2024, growing at 25% annually.
• CBDC Progress: Over 130 countries are exploring CBDCs, with 19 G20 nations in advanced pilot stages.
• Remittance Costs: Digital currencies could cut costs from 6.3% to under 1%, saving $20 billion annually.
• China’s e-CNY: Processed $14 billion in transactions since its 2020 pilot launch.

🤝 Stakeholders and Their Roles

• Governments & Central Banks: Develop frameworks, regulate, and issue CBDCs.
• International Organizations: IMF and World Bank support policy coordination and pilot funding.
• Private Sector: Innovate payment technologies and deploy infrastructure.
• Consumers: Drive adoption and integrate digital currencies into daily transactions.

🏆 Achievements and Challenges

• Achievements:
  • Efficiency: Near-instant cross-border payments via blockchain.
  • Cost Reduction: Remittance fees could drop below 1%.
  • Inclusion: Mobile wallets enable access for unbanked populations.
• Challenges:
  • Sovereignty Risks: Nations could lose control over monetary policies.
  • Cybersecurity Threats: Increased risks of hacking and breaches.
  • Technological Divide: Inadequate infrastructure limits adoption in low-income nations.

🌍 Global Comparisons

• China’s e-CNY: A successful pilot but raises privacy concerns.
• Sweden’s Digital Economy: Cashless transactions represent 80% of payments, setting global benchmarks.

📚 Case Study

India’s UPI and Digital Rupee: Demonstrates potential for scalable frameworks integrating digital payments and national currencies.

✨ Effective Discussion Approaches

• Opening Techniques:
  • “A universal digital currency could save $20 billion annually in remittance fees.”
  • “China’s e-CNY and Sweden’s cashless model highlight the viability of digital currency systems.”
• Counter-Argument Handling:
  • Sovereignty Concerns: Propose hybrid models that coexist with national currencies.
  • Cybersecurity Risks: Highlight blockchain’s transparency and traceability features.

🧠 Strategic Analysis of Strengths & Weaknesses

• Strengths: Enhanced efficiency, cost savings, and increased global trade.
• Weaknesses: Technology dependency and cybersecurity vulnerabilities.
• Opportunities: Advancing financial inclusion and global economic integration.
• Threats: Geopolitical tensions and uneven adoption rates.

📢 Structured Arguments for Discussion

• Supporting Stance: “A global digital currency can streamline trade and reduce transaction costs, boosting global GDP.”
• Opposing Stance: “A global standard risks undermining national monetary policies and increasing cyber threats.”
• Balanced Perspective: “A phased approach with global cooperation can address challenges while unlocking economic benefits.”

📈 Connecting with B-School Applications

• Real-World Applications: Study blockchain scalability, analyze trade economics, or explore cross-border payment frameworks.
• Sample Questions:
  • “What are the implications of a global digital currency for trade?”
  • “How does digital currency adoption influence financial inclusion?”
• Insights: Research CBDC developments, cybersecurity strategies, and global economic policies.