What Are CBDCs (Central Bank Digital Currencies)?
CBDCs — or Central Bank Digital Currencies — are digital versions of a country’s official currency, issued and backed directly by that country's central bank (like the Federal Reserve in the U.S. or the European Central Bank)
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🕒 7:52 PM
📅 May 01, 2025
✍️ By PCODATH
CBDCs — or Central Bank Digital Currencies — are digital versions of a country’s official currency, issued and backed directly by that country's central bank (like the Federal Reserve in the U.S. or the European Central Bank)They're like digital cash, but under full government control.
Here’s the main idea:
CBDCs are intended to make payments faster, cheaper, and more secure, while keeping monetary control firmly in the hands of governments.
👉They are legal tender, just like physical cash or coins.
👉They are centralized and regulated, unlike most cryptocurrencies.
Example CBDC projects:
1 China’s e-CNY (Digital Yuan) — one of the most developed CBDCs.
2 European Central Bank’s Digital Euro (in development).
3 Bahamas' Sand Dollar — the world’s first official CBDC.