As the world becomes more digitized and technologically advanced, our monetary system has yet to fully keep up. Money in many ways has already been digitized, with online banking and through online payment platforms, but central banks are pushing to move toward a currency that allows for full control and much more convenience through what is called central bank digital currencies (CBDCs).
CBDCs are issued by a central bank rather than by a commercial bank. Unlike cryptocurrencies, CBDCs are centrally controlled and the supply of the currency can be controlled. Similar to cryptocurrencies like Bitcoin, the fiat currency would run off blockchain technology. China’s digital renminbi or digital yuan was the first digital currency to be issued by a major economy. As of March 2022, 87 countries have considered fully issuing CBDCs….