CBDCs ( Central Bank Digital Coins ) are digital money issued and controlled directly by the central banks of each country. They sound like cryptocurrencies, but the reality is more complicated.
The key: They are not true cryptocurrencies. They are hybrids that use blockchain technology, but operate in a centralized and private manner, under the total control of the State. While Bitcoin or Ethereum are decentralized, CBDCs keep all the power in the hands of central banks.
In other words: the appearance of blockchain, but without the freedom that decentralization promises. It is the same money, just in digital format.
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What are CBDCs? The explanation you need
CBDCs ( Central Bank Digital Coins ) are digital money issued and controlled directly by the central banks of each country. They sound like cryptocurrencies, but the reality is more complicated.
The key: They are not true cryptocurrencies. They are hybrids that use blockchain technology, but operate in a centralized and private manner, under the total control of the State. While Bitcoin or Ethereum are decentralized, CBDCs keep all the power in the hands of central banks.
In other words: the appearance of blockchain, but without the freedom that decentralization promises. It is the same money, just in digital format.