Central bank digital currency (CBDC) is one of the hottest topics today in the financial industry. CBDC is a digital form of fiat money but the difference from other digital currencies like bitcoin is that it’s officially legalized and controlled by the government. Many countries have been discussing the benefits of integrating digital currency.
The implementation of this initiative has become especially vital in the middle of the pandemic because during the lockdown people saw the advantages of making payments and transacting money using cryptocurrencies. Now in order to avoid illegal money transactions using various types of cryptos, central banks came up with the idea of creating CBDCs.