The digital currency of central banks is under construction, in order to end tax evasion and carry out social policies, they hope to be adopted by the current market.
The Cbdc is a type of digital currency, which is issued by a central bank and which is the digital representation of fiat money (paper money). By its acronym in English it means Central Bank Digital Currency (Central Bank Digital Currency) in its literal translation.
It carries out functionalities similar to cryptocurrencies, adapting to the needs of today’s world, but all this without ceasing to be a control mechanism, one that is in the hands of a few.
“Cbdc is not a cryptocurrency, they are not Bitcoin. It is hybrid, a response from countries concerned about the appearance of free cryptocurrencies in the world, especially concerned about the loss of their economic and financial power in the world”, according to the academic portal of the Bit2me exchange.
Therefore, it is a form of money that will be regulated and tracked by a state or by the union of states. With this type of radically digital monetary policy, which seeks to be an attractive and avant-garde proposal for solving problems, especially in costs and infrastructure, which is the physical version of fiat money (coins and bills).
According to the Bank of England, CBDC is electronic money issued by a central bank. This allows states to indicate that this digital currency is legal tender. The issuance and recording of transactions is done through some kind of centralized database system.
The Cbdc seeks to expand the characteristics and usability of fiat money, especially on the internet, as well as to compete with Bitcoin, Eterium and the rest of decentralized cryptocurrencies.
