Traditionally, sovereign currencies issued by central banks can be issued as banknotes, coins, giro money, electronic money. But with the general development of technology and the application of the so-called distributed ledger technology in the area of central banking, some central banks have already have active projects on determining the need to issue sovereign currencies in digital form, known as central bank digital currency (CBDC). For example, the European Central Bank is currently conducting a survey and analysis in order to determine the potential benefits and risks of issuing a digital euro, based on which it will make a decision on its (non) issuance. (back | back to Q&As about cryptocurrencies)
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