LONDON (Reuters) – Central banks are looking at creating their own digital currencies – a stark contrast to the ethos of cryptocurrencies that seek to subvert mainstream authority over money.
FILE PHOTO: Representations of virtual currency are displayed in front of the Libra logo in this illustration picture, June 21, 2019. REUTERS/Dado Ruvic/Illustration/File Photo
As Facebook’s efforts to launch its Libra cryptocurrency pour fuel onto debates over who will control money in the future, major economies have started to examine how so-called central bank digital currencies (CBDCs) could become reality.
Here are some key questions on the rise of central bank digital currencies and their progress in entering the mainstream.
ARE CBDCs DIFFERENT TO CRYPTOCURRENCIES?
Yes – and fundamentally so.
CBDCs are traditional money, but in digital form; issued and governed by a country’s central bank. By contrast, cryptocurrencies like bitcoin are produced by solving complex maths puzzles,…
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