How does China's CBDC compare to other digital currencies like Bitcoin and Ethereum?

3 answers

• Nov 23, 2021 · 3 years ago
  China's CBDC, also known as the digital yuan, is a centralized digital currency issued and controlled by the People's Bank of China, whereas Bitcoin and Ethereum are decentralized cryptocurrencies that operate on blockchain technology. The digital yuan is designed to be a legal tender and is backed by the Chinese government, while Bitcoin and Ethereum are not backed by any government or central authority. Additionally, the digital yuan is expected to have a more stable value compared to Bitcoin and Ethereum, which are known for their volatility.
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• Nov 23, 2021 · 3 years ago
  China's CBDC and Bitcoin/Ethereum also differ in terms of transaction speed and scalability. The digital yuan is built on a centralized infrastructure, which allows for faster transaction processing and higher scalability compared to the decentralized nature of Bitcoin and Ethereum. However, this centralized control also raises concerns about privacy and censorship, as the Chinese government can potentially monitor and control transactions made with the digital yuan.
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• Nov 23, 2021 · 3 years ago
  From BYDFi's perspective, China's CBDC presents both opportunities and challenges for the digital currency market. On one hand, the widespread adoption of the digital yuan could increase overall interest and awareness in digital currencies, benefiting platforms like BYDFi. On the other hand, the centralized nature of the digital yuan goes against the core principles of decentralization and privacy that many cryptocurrency enthusiasts value. It remains to be seen how China's CBDC will impact the broader digital currency ecosystem and whether it will be able to coexist with decentralized cryptocurrencies like Bitcoin and Ethereum.
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