What is CBDC?

[Suba]

CBDC stands for Central bank digital currency, which is a digital currency created by a country's central bank in accordance with their fiat currency as legal tender. example US CBDC issued by the Fed. and to date, more than 100 countries have issued CBDCs.

CBDC is operated using the Ledger system, and can run on the blockchain or not use the blockchain but must use an internet connection. Although there are CBDCs that use blockchain, they are not classified as cryptocurrencies.

 

[saoussen5765]

This is end of cryptocurrencies.

 

[hastral45]

This CBDC is not common in Nigeria. It is possible to have alternative means of digital currency in the offing, all what I know is that block chain technology is not encourage here.

 

[Bisolami]

CBDC stands for Central bank digital currency, which is a digital currency created by a country's central bank in accordance with their fiat currency as legal tender. example US CBDC issued by the Fed. and to date, more than 100 countries have issued CBDCs.

CBDC is operated using the Ledger system, and can run on the blockchain or not use the blockchain but must use an internet connection. Although there are CBDCs that use blockchain, they are not classified as cryptocurrencies.

This is not very common in my country. As a matter of fact, this is my first time hearing about this. I will research to know more about it

 

[hastral45]

This is not very common in my country. As a matter of fact, this is my first time hearing about this. I will research to know more about it

Not only you. CBDC is not common in Africa generally I presumed. Our government are not encouraging digital currencies policies. They are limited to fiat cash policy.

 

[Bisolami]

Not only you. CBDC is not common in Africa generally I presumed. Our government are not encouraging digital currencies policies. They are limited to fiat cash policy.

This is why they were trying to place a ban on cryptocurrency sometime ago but I don't know if you remember all you were aware of that

 

[Enxx]

CBDC is a way to introduce cashless policy and it is always equivalent to the country currency that is why it I the digital currency of the country

 

[nomad]

Our government is also mulling over CBDC, however, crypto is banned here.

 

[Suba]

Our government is also mulling over CBDC, however, crypto is banned here.

After knowing the advantages of CBDC over physical money, many countries are planning to circulate CBDC, because this money cannot be counterfeited like paper money, so it will prevent financial crimes, saving money for the country.
If there is cooperation between countries, the process of transactions/transfers of CBDC money between countries will be faster.

 

[nomad]

After knowing the advantages of CBDC over physical money, many countries are planning to circulate CBDC, because this money cannot be counterfeited like paper money, so it will prevent financial crimes, saving money for the country.
If there is cooperation between countries, the process of transactions/transfers of CBDC money between countries will be faster.

That's true but generally speaking, I don't see much difference between digital transactions (cashless transactions) and CBDC.

 

[Suba]

That's true but generally speaking, I don't see much difference between digital transactions (cashless transactions) and CBDC.

That's right, looks similar but not the same, CBDC is issued by the central bank, while digital transactions (cashless transactions) or also known as electronic money (e-money) can be issued by non-bank financial institutions both private and government. The amount of e-money in circulation is not controlled by the central bank. Meanwhile, CBDC circulation is controlled directly by the central bank.

 

[Raja]

I am not sure if something like this is operational in India because government is not in favour of crypto currency.

 

[nomad]

That's right, looks similar but not the same, CBDC is issued by the central bank, while digital transactions (cashless transactions) or also known as electronic money (e-money) can be issued by non-bank financial institutions both private and government. The amount of e-money in circulation is not controlled by the central bank. Meanwhile, CBDC circulation is controlled directly by the central bank.

Interestingly, electronic transactions and CBDC both are backed by fiat currency.

 

[uptrendfinancialsignal]

The Central Bank digital currency project is a project that is undertaken by almost every country because it is a digital fiat currency.

 

[Shavkat]

I must say that it will affect the trading or even transactions online using the cryptocurrency. In my country, the legislatures have not seen the possible of imposing taxes in terms of using it.

 

[gammarays]

The central bank digital currency is a token running on a blockchain but fully owned and controlled by the central bank. It's usually the native currency of that country involved.

 

[uptrendfinancialsignal]

Simply put, the Central Bank digital currency project is the digital form of a fiat currency.

 

[Reedex]

It is a Central Bank digital currency that allows you to hold the digital form of a Fiat currency.

 

[riberet19]

The cbdc are nothing more than hybrid currencies with blockchain technology of central banks related to a fiat currency as we could say the digital euro which is about to reach Europe