Does The Rise of CBDCs Pose A Threat to Cryptocurrencies?

The rise of Bitcoin and the crypto world opened many opportunities for the global financial systems and individual investors. Unlike any other time, you can now control your economic activities in a single wallet. The main idea of crypto and digital space is to remove the control of finances from centralizing organizations like banks. But, since the rice of the first crypto, many others followed, offering upgrades to this new financial system. One of the most vital developments across the blockchain space is CBDCs. Through this article, let us try to understand what the rise of CBDCs means to cryptocurrencies. Central Bank Digital Currencies (CBDCs) CBDCs are digital assets issued directly by central banks. It’s a digital version of a country’s native or fiat currency. At the moment, several countries are already exploring the idea of CBDCs. Years ago, China began experimenting with a digital version of its Yuan. The country has already launched the Yuan and is conducting tests in various government facilities. The Japan financial system has also had talks about creating a CBDC. The Canadian central banks also began exploring the idea of CBDCs, and how to implement them successfully. The US government and federal reserves have also been linked with a move into a CBDC-based financial system. Israeli, Nigeria, the Philippines, Qatar, and other countries have been exploring the concept of CBDCs in an attempt to capitalize upon th...