Scan to Download Gate App
qrCode
More Download Options
Don't remind me again today

What are CBDCs? The truth behind the "cryptos" of central banks

CBDCs (central bank digital coins) are what every government wants you to think cryptocurrency is, but here’s the plot twist: they are not really decentralized.

The crux of the matter:

They are digital currency issued and controlled 100% by the central bank of each country. They technically operate on blockchain ( to look modern ), but they operate on private and centralized networks that are only managed by the government.

Quick comparison:

  • Bitcoin: No intermediaries, open source, truly decentralized
  • CBDC: Everything controlled by the State, total traceability, blockchain just a facade

Why does this matter?

Central banks promote them as “cryptocurrencies” to ride the wave of the sector, but they are hybrids of fiat currency + blockchain. The blockchain is just the technology behind it; the real power remains in the hands of the State.

In summary: if the government can control when, how, and where you spend your money, then it is not really a cryptocurrency in the libertarian sense. It is fiat with extra steps.

BTC0.33%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 1
  • Repost
  • Share
Comment
0/400
GateUser-397c7126vip
· 11-04 16:09
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)