What is Central Bank Digital Currency?

What is Central Bank Digital Currency ?

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Central Bank Digital Currency is a digital form of fiat currency issued and backed by a country’s central bank. It is stored and transacted electronically instead of in physical form. CBDCs are distinct from cryptocurrencies, which are decentralized and not backed by any central authority. Private blockchains can be permissioned, meaning that only approved entities can participate in the network, which can help to prevent fraud, illicit activities, and other security risks. Additionally, private blockchains may offer greater privacy for transactions and user data.