Key Differences Between CBDCs And Cryptocurrencies
Adekunle Joshua
Centralization:
The biggest difference lies in control. Cryptocurrencies are decentralized, not governed by any central body. In contrast, CBDCs are government-issued and overseen by central banks
Anonymity:
Using cryptocurrencies offers anonymity, but CBDCs are tied to users' bank accounts
Network Consensus: Cryptocurrencies use consensus algorithms to maintain a decentralized blockchain. CBDCs, however, rely on a government-controlled ledger
CBDCs vs. CRYPTOs: Cryptos are private and decentralized, while CBDCs are centralized but offer scalability advantages
Privacy:
Cryptos' anonymity empowers users, but CBDCs prioritize government oversight