CBDCs (Central Bank Digital Currencies)

DeFi-ned

Most of you must be familiar about the fact that China has banned Bitcoin (for the 19374848th time it seems). However, did you know that they were working on a digital currency of their own? Digital yuan is a currency the Central Bank of China is keen on launching and it’s a part of a broader concept called “Central Bank Digital Currencies (CBDCs)”. In this post, let me try to break this concept down for you and talk about why the Chinese Government is doing so.

(7 min read)

A Central Bank Digital Currency (CBDC) is the digital form of a country’s fiat currency that is also a claim on the central bank. Instead of printing money, the central bank issues electronic coins or accounts backed by the full faith and credit of the government.

83 countries (representing over 90 percent of global GDP) are now exploring a CBDC. In…

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