📋 Written Ability Test (WAT)/Essay Analysis Guide: Should Countries Adopt Universal Digital Currencies to Improve Cross-Border Payments?

🌐 Understanding the Importance

Universal digital currencies directly link to topics of financial inclusion, globalization, and technology. B-school students must analyze these currencies’ transformative potential for the global economy.

📝 Effective Planning and Writing

• Time Allocation:
• ⏱️ Planning: 5 minutes
• 🖋️ Writing: 20 minutes
• 🔍 Review: 5 minutes
• Preparation Tips:
• Research successful case studies like Sweden’s e-Krona.
• Focus on regulatory and technical challenges.

💡 Introduction Techniques

1. Problem-Solution Approach: “The inefficiency of cross-border payments costs businesses billions annually. Universal digital currencies offer a transformative solution to this issue, yet challenges remain.”
2. Statistical Impact: “With over $150 trillion in annual transactions and 8% average remittance costs, cross-border payments remain inefficient. Universal digital currencies could revolutionize this space.”

📚 Structuring the Essay Body

• 📈 Paragraph 1: Achievements:
• Highlight cost savings, financial inclusion potential, and blockchain transparency.
• 🔄 Paragraph 2: Challenges with Comparative Analysis:
• Explore sovereignty concerns, regulatory barriers, and cybersecurity risks using global examples.
• 🚀 Paragraph 3: Future Outlook:
• Discuss hybrid systems, improved regulations, and collaborations for secure implementation.

🏁 Concluding Effectively

1. Balanced Perspective Template: “Universal digital currencies represent a significant opportunity for global finance. However, their success depends on addressing regulatory, security, and implementation challenges.”
2. Global Comparison Template: “Countries like Sweden and China showcase the potential of digital currencies. Learning from their experiences can help build robust global frameworks.”

🌍 Recommendations for Sustainable Progress

• 🤝 Strengthen international collaboration for standardization.
• 🔒 Invest in secure blockchain infrastructure.
• 📘 Promote digital literacy for widespread adoption.

✍️ Sample Short Essays

1. Balanced Perspective:

“Universal digital currencies could redefine global payments by reducing costs and improving efficiency. However, their implementation poses challenges such as regulatory discrepancies and cybersecurity threats, requiring careful planning and global cooperation.”

2. Solution-Oriented:

“The inefficiencies in cross-border payments demand innovative solutions. Universal digital currencies, if implemented with robust safeguards, could streamline global trade and financial inclusion.”

3. Global Comparison:

“From China’s e-CNY to Sweden’s e-Krona, universal digital currencies are proving their potential in cross-border payments. These examples underscore the need for collaborative global frameworks to ensure their success.”