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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:
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.