What are CBDCs? The truth behind central bank digital coins

CBDCs ( Central Bank Digital Currencies ) are somewhat like the digital sibling of your fiat money. Each country issues its own, controlled by its central bank.

Now, here comes the interesting part: although they look like cryptocurrencies and are built on blockchain, they are not the same. They are rather a hybrid. They operate on private blockchain networks, not public ones like Bitcoin or Ethereum.

The key difference: CBDCs maintain centralized control (as always), but leverage blockchain technology to be faster and more efficient. It's like giving a “technological upgrade” to traditional money without losing control.

This is an important point of debate in the crypto community: is blockchain without decentralization really blockchain? Many see CBDCs as a “best of both worlds” solution, while others view them as a threat to the original principles of the technology.