The big difference is that crypto is “decentralized”. Traditional currency is, to some extent, controlled by a central bank. The CB seeks to ensure price stability.
Digital cash schemes are much older than bitcoin/crypto. It’s not “crypto” just because it’s digital money.
parpol@programming.dev 4 months ago
“Crypto isn’t backed by a government”
“CBDC is a digital form of fiat—money that is issued by central banks. It is designed to be a digital representation of the country’s physical currency. Unlike cryptocurrencies like Bitcoin or Ethereum, CBDC is backed by the government and is legal tender.”
CBDC is blockchain based, i.e cryptocurrency.
Japan is developing a similar cryptocurrency as well.
bhmnscmm@lemmy.world 4 months ago
I stand corrected. There is literally no functional difference between “currency” and (at least some) crypto.
agent_flounder@lemmy.world 4 months ago
How much energy is required for use of each?
xep@kbin.social 4 months ago
There is no reason for CBDC to use blockchain.
kirklennon@kbin.social 4 months ago
A CBDC can be blockchain based, but almost none actually will be. China's isn't. Japan's CBDC is not. In the US, the Federal Reserve is still in early stages but I'm confident it won't use blockchain either.