Central Bank Digital Currencies (CBDCs) have been gaining worldwide attention as governments consider adopting this new form of digital fiat currency. A CBDC is essentially a digital version of a fiat currency, which is a currency decreed by the government. Though fiat currencies can be backed by commodities like gold or silver, and have been in the past, currently, all fiat currencies are backed solely by faith in the governments issuing the currencies. [3] Digital Currency: Yuan comes with an expiry date: Spend or it will vanish, ETBFSI (Apr. [4] Central Bank Digital Currency Tracker, Atlantic Council, https://www.atlanticcouncil.org/cbdctracker/.

Source: Economic Times June 02, 2023 01:56 UTC