What is CBDC?

[Fidelia]

I have been hearing about Central Bank Digital Currencies (CBDC). It seems they are getting more prominent everyday.

Can someone here explain the concept of CBDCs and their roles in the crypto sphere.

 

[riberet19]

A CBDC is a digital currency of central banks, for example, the digital Euro that is under development by the European Central Bank will be a CBDC which is a currency that uses blockchain as a technology but in this case in a centralized way, that is, its accounting record will not be public but private.

 

[Suba]

Several years ago, many countries created CBDCs which aimed to contain cryptocurrencies but failed. There are CBDCs that run on blockchain, there are also those that run without blockchain. CBDC is not a cryptocurrency because it is controlled by a central bank. Currently, CBDC is widely used by large global traders to streamline their transactions. CBDC is not related to crypto.