This week marked a major milestone in blockchain adoption after a video surfaced on Twitter demonstrating China CBDC during a transaction. The video, labeled “China’s digital currency in action w/ the Agricultural Bank of China” received international coverage as it marks the largest world power to launch a digital currency to date. It also shows just how far the project has come over the last couple of years.
CBDCs vary significantly from decentralized cryptocurrencies such as Bitcoin. For one, these blockchain assets are centralized. This centralization has its benefits for government officials. Primarily, they gain more monitoring capabilities over the current fiat system. Officials hope to use this data to better track and understand the spending habits of their citizens. Additionally, the added transparency will assist in crime-fighting and economic planning.