Central Bank Digital Currency and Cryptocurrencies

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In this video we will be exploring the difference between Central Bank Digital Currency and Cryptocurrencies

Central Bank Digital Currency are digital currencies based on private or permissioned blockchains issued and recorded by a nation's monetary authority or central bank. CBDC’s are pegged to the value of the country’s fiat currency.

As CBDC’s are digital it brings true meaning to a cashless society.

A cryptocurrency when compared to CBDCs are based on public blockchains, enforced by a distributed network of computers and secured by cryptography making it immutable and nearly impossible to double-spend. The price of a cryptocurrency is derived from the supply and demand of the market.

As cryptocurrencies transactions are public distributed blockchain ledgers, they can be verified by anyone making them trustless systems.

The key difference between Cryptocurrencies and CBDC is that cryptocurrencies are not issued by any central authority. Hence, they do not have a single point of failure and are resistant to government interference or manipulation.

Experts believe that blockchain and related technology will disrupt many industries. To name a few industries, we have banking, finance, real estate, supply chain, health care, insurance and transportation.

Let us know what you all think about CBDC and Cryptocurrency in the comments below.

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Thank you all for staying till the end.

See you in our next video.

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