What is a Central Bank Digital Currency (CBDC), and how does it fundamentally differ from decentralized cryptocurrencies like Bitcoin?
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A
A CBDC is a stablecoin issued by private banks, backed 1:1 with government bonds, similar to how Tether operates
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B
A CBDC is a digital form of a country's fiat currency issued and controlled by the central bank, making it centralized, government-backed, and a legal tender — unlike permissionless cryptocurrencies
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C
A CBDC is a cryptocurrency that central banks hold in their reserves alongside gold and foreign exchange
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D
A CBDC is a blockchain-based payment network that central banks use to settle interbank transfers, accessible only to financial institutions