What are the key differences between CBDCs and traditional cryptocurrencies like Bitcoin and Ethereum?

1 answers

• Jan 12, 2022 · 3 years ago
  As for adoption, CBDCs have the potential to be widely adopted due to their backing by central banks and integration with existing financial systems. This can provide a sense of stability and trust for users, as they are issued by trusted institutions. However, the adoption of CBDCs may also raise concerns about privacy and surveillance, as central banks would have access to transaction data. On the other hand, cryptocurrencies face challenges in terms of mainstream adoption due to their volatility, regulatory uncertainty, and lack of familiarity among the general public. However, they have gained significant popularity among tech-savvy individuals and are being increasingly recognized as a legitimate asset class by institutional investors.
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