Central Bank Digital Currency (CBDC)

Central Bank Digital Currencies (CBDCs) are fiat currencies digitalised.

Although CBDCs allow users to transact anonymously, they differ from crypto. As the government backs CBDCs, they are not decentralised, one of the building blocks of cryptocurrency. Because of its government backing, it is recognised as legal tender in the issuing country, which is not always the case with crypto. 

Additionally, some CBDCs are based on the blockchain; they do not need distributed ledger technology to function.