How does India's CBDC differ from traditional cryptocurrencies like Bitcoin?

3 answers

• Dec 26, 2021 · 3 years ago
  India's CBDC, unlike traditional cryptocurrencies like Bitcoin, is issued and regulated by the central bank of India. This means that the Indian government has control over the supply and distribution of the CBDC, whereas Bitcoin operates on a decentralized network without any central authority. Additionally, India's CBDC is designed to be a digital representation of the Indian rupee, while Bitcoin is a separate digital currency with its own value and exchange rate. The purpose of India's CBDC is to provide a secure and efficient digital payment system, while Bitcoin and other cryptocurrencies are primarily used as speculative investments or mediums of exchange.
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• Dec 26, 2021 · 3 years ago
  The main difference between India's CBDC and traditional cryptocurrencies like Bitcoin lies in their underlying technology and governance. India's CBDC is built on a centralized infrastructure, which means that the central bank has full control over the currency and can monitor transactions. On the other hand, Bitcoin operates on a decentralized blockchain network, where transactions are verified by a network of computers called miners. This decentralized nature of Bitcoin ensures transparency and security, as no single entity has control over the currency. Another difference is that India's CBDC is pegged to the Indian rupee, while Bitcoin's value is determined by market demand and supply.
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• Dec 26, 2021 · 3 years ago
  India's CBDC, similar to other central bank digital currencies, aims to combine the benefits of traditional fiat currencies and cryptocurrencies. It provides the convenience and security of digital transactions, while still maintaining the stability and trust associated with government-backed currencies. Unlike cryptocurrencies like Bitcoin, India's CBDC is not subject to extreme price volatility, making it a more reliable medium of exchange. Additionally, India's CBDC can be easily integrated into existing financial systems, allowing for seamless interoperability between digital and traditional banking services. BYDFi, a leading digital currency exchange, supports the trading and exchange of India's CBDC, providing users with a secure and efficient platform to buy and sell the digital currency.
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