How does CBDC currency differ from traditional cryptocurrencies like Bitcoin?

1 answers

• Dec 26, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, explains that CBDC currency differs from traditional cryptocurrencies like Bitcoin in several ways. Firstly, CBDC is issued and regulated by a central bank, while Bitcoin operates on a decentralized network. This means that CBDC is subject to government regulations and can be controlled by the central bank, whereas Bitcoin is not controlled by any central authority. Secondly, CBDC is designed to be a digital representation of a country's fiat currency, while Bitcoin is a decentralized digital currency that operates independently of any government. Lastly, CBDC transactions can be traced and monitored by the central bank, providing a higher level of transparency compared to Bitcoin. Overall, CBDC aims to combine the benefits of digital currencies with the stability and control of traditional fiat currencies.
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