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A Central Bank Digital Currency (CBDC) is a digital fiat currency that is centralized and minutely controlled by the issuer.


CBDCs, like crypto, are expected to be designed with blockchain technology at their core, and will be one hundred percent digital. CBDC's will eventually do away with all paper notes and cheap metal coins.

Unlike crypto, CBDC blockchains are expected to be private rather than public, so only the Central Bank and those it authorizes will be have access to the data in their blockchain. These permissioned blockchain networks are likely to extend to member banks and financial institutions, but are anticipated to eventually be completely centralized within the Central Banks, eliminating the need for many other institutions.

Also unlike cryptocurrencies, there is no case for speculating in CBDCs, as units will be added or subtracted from the blockchain arbitrarily. Central Banks will also likely eliminate "hoarding" of digital assets by selectively removing assets from accounts that it deems don't "need" them. Obviously, CBDCs could be used to control the behavior of anyone that relies on them to obtain their needs according to hidden rules arbitrarily established or modified by the Central Banks, which is antithetical to the crypto model, which operates on a transparent model that can only be changed by agreement amongst the user community.

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