TLDR
Bitcoin and other virtual currencies are not a real threat to central banks due to their high volatility. CBDCs are digital assets, issued by central banks, which may be considered as a complete replacement for notes and coins. The value of cryptocurrencies is determined entirely by the market, and not influenced by factors such as monetary policy or trade surpluses. Central banks would issue a CBDC initially, but once issued it would circulate between banks, non-financial firms and consumers without further central bank involvement. It would be based on a permissioned distributed ledger, with the central bank determining who acts as a trusted node.via the TL;DR App
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Written by ikuchma | Financial Advisor
