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CBDC vs Cryptocurrency: What's the Difference?
Central Bank Digital Currencies (CBDCs)
A central bank digital currency (CBDC) is a digital currency issued by a country's central bank. CBDCs are often compared to cryptocurrencies, but there are some key differences between the two.
Regulation
One of the biggest differences between CBDCs and cryptocurrencies is that CBDCs are regulated by central banks. This means that they are subject to the same regulations as other forms of currency, such as fiat currency.
Issuance
Another difference between CBDCs and cryptocurrencies is that CBDCs are issued by central banks. This means that they are not subject to the same volatility as cryptocurrencies, which are often issued by private companies.
Cryptocurrencies
Cryptocurrencies are digital currencies that are not issued or backed by a central bank. They are typically decentralized, meaning that they are not subject to the same regulations as CBDCs.
Volatility
One of the biggest differences between cryptocurrencies and CBDCs is that cryptocurrencies are much more volatile. This is because they are not regulated by a central bank and are subject to the whims of the market.
Anonymity
Another difference between cryptocurrencies and CBDCs is that cryptocurrencies are often anonymous. This means that they can be used to make transactions without revealing the identity of the sender or recipient.
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