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CBDC
state-issued digital currency
CBDC (Central Bank Digital Currency) is a digital form of national fiat currency issued and controlled directly by a countryÔÇÖs central bank. Unlike decentralized cryptocurrencies, CBDCs are centralized, programmable, and tied to official monetary policy.
Use Case: “CBDCs enable central banks to directly manage monetary policy tools like stimulus, taxation, and capital controls ÔÇö all with programmable, trackable digital money.”
Key Concepts:
- Centralized Ledger ÔÇö Operated under full control of national monetary authorities.
- Programmable Money ÔÇö Enables rules-based spending, expiration dates, or usage limits.
- Surveillance Finance ÔÇö Every transaction can be tracked, recorded, and analyzed.
- Monetary Policy Tool ÔÇö Supports modern enforcement of economic levers like UBI or negative rates.
Summary: CBDCs are the digital evolution of fiat currency ÔÇö offering speed and efficiency at the cost of financial privacy. They reflect a shift toward centralized digital control over money and may reshape the global economy alongside decentralized counterforces.
| Attribute | CBDC | Bitcoin | Stablecoin (e.g., RLUSD) |
|---|---|---|---|
| Control | Central Bank | Decentralized Miners/Nodes | Private Issuers |
| Supply Policy | Dynamic, Government Controlled | Fixed (21M Cap) | Collateral-Backed |
| Privacy | Low ÔÇö Full Traceability | High (pseudonymous) | Medium ÔÇö Depends on Issuer |
| Usage Restrictions | Yes ÔÇö Fully Programmable | None | Sometimes (e.g., blacklists) |