What is a Central Bank Digital Currency (CBDC) - Crypto in Plain English - Episode 283 - by cryptohunt.it

What is a Central Bank Digital Currency (CBDC)

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

If crypto ever goes mainstream as a currency, it’ll have to compete with government issued money like the US Dollar - that is, unless the government creates their own crypto based currency.

And that is the idea behind a Central Bank Digital Currency, also called CBDC. Many suspect that eventually governments won’t be able to compete with the advantages of crypto, and the best way to get around that is simply use the technology themselves.

But is that really crypto? Let’s dig in.

Remember that Bitcoin was invented in 2008 as money that is not under the control of a single entity - for example a government or corporation. Governments, of course, would likely not find this an appealing concept - the whole point of having a government currency is to exercise control over it. And that can be for good reason - monetary policy steer economies the right way if done well.

So it is safe to assume governments would likely just use the technology behind blockchains, but remain in charge. It’s still crypto - just not decentralized in the way that crypto proponents would like it to be.

Good or bad? We’ll leave you to judge as always. But sometimes a comprise is already a step forward.

This podcast is produced by Cryptohunt.it the easiest place to learn crypto. Copywriting is done by Arndt Voges, Social Media is done by Brett Holleman, Design is done by Carmen Rincon and my name is Christian Byza, Co-Founder of Cryptohunt and I am your host of this daily show.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.