Central banks explore digital currencies to offer stability amid the current crypto craze?

Central banks explore digital currencies to offer stability amid the current crypto craze?

Central Bank Digital Currencies are a new form of electronic money that, unlike well-known cryptocurrencies, are issued by central banks of certain countries. These central bank-issued digital currencies are simply digital tokens, similar to cryptocurrency, pegged to the value of a country's currency. But they are not a form of cryptocurrency. Although the idea for CBDCs came from cryptocurrencies, they are two very different types of digital currencies. The key difference between CBDCs and cryptocurrency is centralisation. Centralisation is simply the control of an activity under a single authority. A cryptocurrency is a decentralised digital currency, meaning there's no central party that controls it. CBDCs are most similar to Stablecoins, which are cryptocurrencies that are pegged to fiat money and attempt to maintain the same value. The main difference is that the world's governments issue CBDCs. More than 80 countries around the world are researching or developing CBDCs, and they're at various stages of the process. In 2020, a group of seven central banks including the US, Europe, Japan, Switzerland, Canada, Sweden, and England, indicated an intention to assess the feasibility of implementing publicly available CBDCs. Other countries are considering or beginning to implement CBDCs including China and Russia as