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Central Bank Digital Currencies (CBDC)

What are Central Bank Digital Currencies (CBDCs)

Central Bank Digital Currencies, more commonly called CBDCs, are digital assets issued by a state central bank.

State central banks are increasingly leveraging the technological advantages of blockchain and other crypto-based networks. More and more central banks are responding to the crypto boom and the supposed benefits of digital currency by developing their own digital currencies. These are called CBDCs or central bank digital currencies. The digital euro is one such example.

The actual idea of decentralization, as with other cryptocurrencies, does not play a role here. However, this could create competition for stablecoins.