202.00 ₽ What Are Central Bank Digital Currencies (CBDCs)? Nieuwveen
- Location: 74 Golf Road, Sp3 8fw, Nieuwveen, Schaffhausen, Germany
Central Bank Digital Currencies (CBDCs) are virtual representations of state-issued money, issued and regulated by the central bank. Unlike decentralized cryptocurrencies like Bitcoin or Ethereum, which use blockchain systems, CBDCs are state-regulated. They serve as a direct asset of the central bank, pancake swap similar to physical cash but in a virtual structure.
CBDCs can be classified into two primary categories:
1. Retail CBDCs: These are designed for use by the general public for daily transactions. They function similarly to physical cash, allowing individuals to conduct transactions, send funds, pancakeswap and handle finances electronically.
2. Wholesale CBDCs: Meant for banking institutions, and are used for large-scale transactions and interbank settlements.
Why CBDCs Are Important
CBDCs are not just a technological advancement; they could revolutionize the financial system. Here’s why they are significant:
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