Hi hivers. If you're looking for the information regarding the rule of CBDs in merging finance with crypto to then you have landed on the Right Place. So, what is CBDC? It is central bank digital currencies, And Let's understand the difference between Cryptocurrencies and CBDCs. So, according to the government, cryptocurrencies like Bitcoin, Ethereum, XRP, and Hive are private cryptocurrencies, and the CBDC is a government currency, and they are not a Unique currency, but they are backed by Fiat. Also, they are using blockchain technology for transactions and other things And other things.
Now, here I want to share the link between these two Different segments. When we have seen these two things as rivals of each other, but now they are coming together. And this is going to be a broader Financial economy that is digital. Cryptocurrency is more beneficial for the people because it is decentralised and gives Power in People's hands, and it has transparency in peer-to-peer transactions are the main Weapons of cryptocurrency. However, CBDC is going to connect these two different segments, and if that happens, Storm will come.
We need smooth smoother on-ramp, and this should be between the Cryptocurrency and Fiat. This can be possible with the CBDs, and it can play a major role here. Right now, we are seeing that cryptocurrency is not directly connected with the banks, and we have to face many consequences when we want to do transactions. right now, we are dependent on the peer-to-peer transaction when it comes to the Transaction between cryptocurrency and Banks You often face delays and also extra charges However, CBDC can play a big role here and Create a bridge between these two different segment and make things easy So it can Be a connection between decentralised finance Which is also called Defi and Traditional banks so this way the business will be grow more.
When it happens, then more people will trust digital currencies because now we are seeing the adoption is happening, but still there are people who fear from the investment in digital currencies. And they do not want to engage with the cryptocurrency, and also, we are often seeing scams, and there is no regulation. Volatility is a big issue in cryptocurrency. So we're trapped by these things. However, if we are careful, then we can avoid such scams in Crypto, but it depends on us. You do not want to face the volatility, so simply hold your favourite coin, and your favourite coin should be a solid project. Do not invest in any coin because not every coin is built for long-term holding. Remember this in your mind. Superior
Now the question is, will this work or not? Can merging these two things encourage innovation without harming the main purpose of cryptocurrency? So this is still a question. However, you can share your thought process in the comments section. I need your support because your support is important to me, so you can support me by sharing this article and following me. Now I am signing off.
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