Part 7/10:
While CBDCs may resemble cryptocurrencies on the surface, fundamentally they are quite different. Cryptocurrencies such as Bitcoin operate on decentralized blockchain networks, promoting privacy and autonomy. In contrast, CBDCs are centralized, digital fiat currencies issued directly by governments’ central banks.
CBDCs undermine key principles of cryptocurrencies—such as decentralization and privacy—and centralize both financial data and monetary control. They give central banks and governments unprecedented power to manipulate the money supply and influence economic activity, potentially leading to increased government discretion over individual financial freedoms.