Central Bank-Issued Digital Currency (CBDC) is a national currency that issues from a central bank. It is the crypto counterpart to a physical currency, such as the U.S. dollar.
CBDCs may seem to parallel free-market digital currencies, but they are actually anti-crypto; they are the antithesis of Bitcoin. Consider some of the technical differences:
1.Bitcoin is decentralized; CBDCs would centralize all aspects of digital currency in the hands of one agency.
2.Bitcoin is peer-to-peer between individuals; CBDCs would be created and administered by governments.
3.Bitcoin is open-source; CBDCs would be patented, proprietary, and undisclosed.
4.Bitcoin is mined; CBDCs would be issued by a central bank.
5.Bitcoin is limited to 21 million coins; CBDCs’ cap would be whatever governments want.
6.Bitcoin is on a transparent blockchain; CBDCs may not even use a blockchain.
7.Bitcoin offers individuals possession of private keys; private keys for CBDCs would be owned by the bank, which means it would own the wealth.
8.Bitcoin is quasi-anonymous; CBDCs would track both identities and how the currency is used.
9.Bitcoin severs the connection between currency and central banks; CBDCs would cement it.
