CBDC or Central Bank Digital Currency, could best be described as an official cryptocurrency of a nation. CBDC would be launched and controlled by a government, or the apex bank of a nation. In general, the CBDC of a nation would be equivalent to the fiat currency of that nation.

Glitzkoin compiles a few important aspects of CBDC in this presentation and includes, some very relevant notes. The content should help you stay updated with, this fast developing segment of digital currency.

The European Union hopes to reveal a clearer vision of its plans for CBDC in 2021. It would be interesting to see whether, members of the EU would launch their own Central Bank Digital Currencies. This would be in addition to a common CBDC launched for the EU.

Legal clarity on India's crypto policy is still awaited, this could happen in 2021. There are rumors of a plan to implement a blanket ban on private cryptocurrency. A few experts claim that, the ban would be followed by the launch of India's Digital Rupee - an Indian CBDC. These are just unsubstantiated rumors at this time.

Whether or not CBDC, would have a negative impact on private banks would largely depend on, how banks adapt to the emerging scenario.

No doubt that the pandemic boosted the case for CBDC. The crisis clearly revealed the weaknesses, of fiat money and the present banking system.

The IMF did mention that banking laws in most nations, did not currently have clauses that supported, the launch of Central Bank Digital Currencies. This could be rectified through updated legislation.


Though an often discussed issue - there should be no doubt that CBDC would be equal to real money. Governments might expect CBDC to partially or wholly, replace conventional money in the future.

So would CBDC replace conventional money? The extent to which Central Bank Digital Currencies, would replace fiat money would differ from nation to nation. The time frame for any significant replacement would be fairly large.

Fair to say that neither CBDC nor private crypto, would reduce the usage of conventional money by a substantial degree. This would remain true for the next few years

There should be a clear cut distinction between CBDC and private cryptocurrency. Governments would in general like to control, price speculation and volatility for their CBDC. Having said that, there definitely is space for both, CBDC and private cryptocurrency.

China happens to be the leader in CBDC so far. The Digital Yuan has been undergoing vigorous testing. It does seem that the Chinese CBDC would play a role beyond, the nation's geographical boundaries.

While CBDC would be a predominantly government affair, the private crypto industry could play a supporting role.

Expect to hear more about Central Bank Digital Currency in the coming years. Governments across the globe, have started to recognize the benefits of digitizing their currencies.

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