DISTINGUISH THE DIFFERENCES OF CBDC AND BLOCKCHAIN. TWO SEPARATE INDEPENDENT SYSTEMS.

 

CBDCs (CENTRAL BANKING DIGITAL CURRENCY system) - CENTRAL BANK DIGITAL CURRENCY SYSTEM.

And

DECENTRALIZED BLOCKCHAIN FINANCIAL SYSTEMS - DECENTRALIZED BLOCKCHAIN FINANCIAL SYSTEM.

1. FEATURES OF CBDC (Central Bank Digital Currency System):

Centralization: CBDC is issued and controlled by a central authority such as a central bank or government. This means that the central authority has complete control over the currency, including its supply, distribution, and value.

Privacy: CBDC transactions are monitored by a central authority, for individual privacy. This could lead to concerns about surveillance and overreach by the DSC.

Infrastructure Requirements: Implementing a CBDC requires significant infrastructure and the deployment of several new technologies. This can pose a challenge for countries with limited resources or underdeveloped technological capabilities.

Security: The digital nature of CBDC makes it vulnerable to cyberattacks, which could lead to loss of funds or other security limitations.

2. CHARACTERISTICS OF THE DECENTRALIZED BLOCKCHAIN FINANCIAL SYSTEM.

Decentralization: The decentralized nature of blockchain means there is no central authority controlling the system. This means it is more democratic and fair.

Transparency: Transactions on the blockchain are transparent and can be easily audited. This means the system is less susceptible to fraud and corruption. Blockchain systems provide a high level of transparency because all transactions are recorded on high-Quantum public technology that is accessible to anyone.

Security: Blockchain is highly secure due to its decentralized nature and use of cryptography. Blockchain technology is inherently secure and resistant to hacking attacks. This makes it harder for bad guys to hack or manipulate the system.

Efficiency: Blockchain transactions can be processed faster and at lower costs than traditional financial systems. This leads to increased financial access, especially for people in developing countries or those with weak access to banking services.

In conclusion, although CBDC can bring certain advantages, such as better control of the monetary system.

But decentralized blockchain financial systems offer more benefits in terms of privacy, security, transparency, and accessibility.

Do: Embrace the Blockchain decentralized financial system.