What are CDBCs?

CBDCs are Central Bank Digital Currencies. Digital versions of our traditional currencies. Issued directly by central banks 🏦. They resemble cryptocurrencies, but they are not really. They are something different. They operate on blockchain, yes, but in a centralized manner and under strict control 🔒.

By 2025, more than 130 countries are already involved in this. Twenty of them are quite advanced 🚀. China is leading with its e-CNY. Sweden is not far behind either. It seems we are facing something big in the financial world 🌐.

The types of CDBC are not many:

• Wholesalers for large financial players 🏢
• Retailers for people like you and me 👨‍👩‍👧‍👦

The technology behind it is complex. They use encryption systems. Cybersecurity measures everywhere 🔐. They protect privacy, well, that's what they say. But control is still there, in centralized hands.

International payments could be faster with this. Financial stability, stronger 🌍. It's interesting how the mBridge project allows banks to see everything in real time. The issuance. The circulation. The data 📊.

Some CDBCs have smart contracts. Quite surprising. They can limit where and when you spend your money. Or set specific conditions 🔥. It is not entirely clear how far this will go.

The revolution is already here. CDBCs are, it seems, the future of government-controlled money 🌕. Whether we like it or not.