It is quite possible that CBDC and cryptocurrencies will coexist for some time. But who has what advantages? Let’s take a look at that.
CBDC or central bank digital currency would be another option to exchange the currency of the country in which the CBDC is located. You can exchange fiat currency using cash or pay cashlessly using bank cards. CBDC should work on a similar principle to cashless payments, but work just as cheaply and essentially act as a form of digital cash. However, there are also a lot of challenges associated with CBDC that make a lot of people distrust them so far.
Cryptocurrencies attract investors because they are decentralized. You don’t need to prove your identity as such to hold them when you open a bank account. However, on the other hand, if you happen to lose your cryptocurrencies or get robbed, there is no centralized file to help you get your money back. Perhaps for this reason, cryptocurrencies have in many cases become more of a speculative asset that investors hold for the short term.
CBDC and cryptocurrencies
These are two very different things, one is purely centralized and the other is not. Investors and those who don’t want to give their information to a centralized entity are opting more for decentralized currencies to keep their privacy protected. However, there are alternatives that combine the best of both worlds. Take our PlatonCoin (PLTC).
PlatonCoin (PLTC) is a cryptocurrency based on the ETH blockchain. It combines the best of both the centralized and decentralized worlds. It offers you a wallet option that is insured, so you don’t have to worry if you lose your money that you won’t see it again, while maintaining your freedom to decide how you handle your money.
All asset options have their pros and cons, and the question is whether it is better to have a centralized entity that manages everything or a decentralized network that provides security in other ways. However, it’s good to know that there are options that combine the best into one currency.