Central Bank Digital Currencies (CBDCs) vs. Cryptocurrencies

If there is actually something I have come to discover, it is the fact that change will always remain constant. What do I mean by that? We will constantly see changes happening in our lives whether it is positive change or negative change. If there is something I have come to discover that has helped the crypto space from the days of starting, I will say it is the change factor. Like I usually said many times, Blockchain technology started been limited in application to the crypto space but as time goes on, it continues to evolve and now we are seeing the application of Blockchain technology spreading even beyond the crypto space.

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Recently, we have the Blockchain technology been applied in several sectors like health, finances and many more. Same thing crypto tokens. Generally, the crypto space started with just bitcoin but I must confess that it has spread beyond that. Now recently, we have a lot of crypto tokens gaining massive attention. We have the likes of stablecoins, memecoins, shitcoins and many more. Today I will be talking about the comparison that exists between the CBDCs we have been used to for several decades and the crypto tokens.

CBDCs most of the time seems to be misinterpreted as Crypto tokens but it is not always so. CBDCs are the digital asset of fiat currency. When it comes to CBDCs, it is regularised by a central authority which are banks. Majorly the reason why it is created is to help to enhance the mode of payment and make us live in the digital era. With CBDCs, you can make payment online instead of just limited to the physical mode of payment. It is purely digital but work on our traditional country currency nevertheless.

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Of course there are lots of advantages of CBDCs that is attached to it. The aspect of centralised authority been able to control CBDCs and the fact that it is well rooted in the financial inclusion. Not only that, it also helps to reduce what I will call transactions cost as compared to us going on in the physical form of payment. When it comes to the crypto space, we are not new to it. There are certain things that we should start paying attention to it. Crypto even though it is highly volatile, it has more wider audience. One of the things that I really helped the crypto is the fact that it is Decentralised in nature that gives an edge over it.