Part 6/10:
Centralization vs. Decentralization: CBDCs are centrally controlled by the issuing authority—most often the central bank—ensuring government oversight. Conversely, cryptocurrencies like Bitcoin operate on decentralized blockchain networks without any central authority.
Privacy and Transparency: CBDC transactions are fully traceable, allowing central banks to monitor activity comprehensively. In contrast, cryptocurrencies can offer greater privacy—certain types are nearly untraceable—though this varies across platforms.
Issuance and Control: CBDCs are issued and regulated by the government, tied directly to the physical currency, while cryptocurrencies are mined or created by network participants.