RE: LeoThread 2024-10-22 21:22

[taskmaster4450le]

How do CBDCs work?

CBDCs work similarly to digital currencies like Bitcoin or Ethereum, but they are backed by the full faith and credit of the central bank. Here's a simplified overview of how CBDCs work:

1. Issuance: The central bank issues CBDCs digitally, using advanced cryptographic techniques to secure and verify transactions.
2. Account-based system: CBDCs are stored in a digital wallet, which is linked to a user's bank account or identity. This ensures that transactions are authorized and tracked.