How does CBDC differ from traditional cryptocurrencies like Bitcoin?

3 answers

• May 08, 2022 · 3 years ago
  CBDCs, unlike traditional cryptocurrencies like Bitcoin, are issued and regulated by central banks. They are backed by the full faith and credit of the government, making them more stable and less volatile compared to decentralized cryptocurrencies. CBDCs also offer greater control and oversight for governments and central banks in terms of monetary policy and financial stability.
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• May 08, 2022 · 3 years ago
  When it comes to CBDCs, think of them as digital versions of traditional fiat currencies, like the US dollar or the Euro. They are designed to be used as a medium of exchange, just like physical cash or digital payment systems. In contrast, cryptocurrencies like Bitcoin are decentralized and operate on a peer-to-peer network, without the need for intermediaries like banks or governments.
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• May 08, 2022 · 3 years ago
  BYDFi, a leading digital currency exchange, believes that CBDCs have the potential to revolutionize the financial industry. With their ability to combine the benefits of digital currencies and the stability of traditional fiat currencies, CBDCs can offer a more efficient and secure means of conducting transactions. They can also help to reduce financial fraud and improve financial inclusion, especially in regions where access to traditional banking services is limited.
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