Cryptocurrency Q&A
What is the difference between a central bank digital currency and cryptocurrency?
What is the difference between a central bank digital currency and cryptocurrency?
TaegeukChampionship
Sat Jul 06 2024
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7 answers
1380
Could you elaborate on the key distinctions between a central bank digital currency (CBDC) and a cryptocurrency? Specifically, I'm curious about their underlying principles, regulatory oversight, issuance mechanisms, and potential impact on the financial system. How do CBDCs differ from traditional fiat currencies, and how do cryptocurrencies represent a departure from traditional monetary policies? Additionally, what are the potential advantages and disadvantages of both CBDCs and cryptocurrencies, and how might they coexist or compete in the future?
7 answers
mia_rose_painter
Mon Jul 08 2024
Furthermore, a CBDC is a "direct liability" of the respective central bank.
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Eleonora
Mon Jul 08 2024
A pivotal distinction lies in the origin of a central bank digital currency (CBDC) and a cryptocurrency.
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Martino
Mon Jul 08 2024
A CBDC, as the nomenclature suggests, originates from a central bank.
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WhisperVoyager
Mon Jul 08 2024
This issuance by a central authority sets it apart from cryptocurrencies, which are decentralized by nature.
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Martino
Sun Jul 07 2024
This liability status underscores the fact that a CBDC is backed and guaranteed by the central bank.
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