Bitcoin’s growing popularity, the digitization of payment systems, and the demand for stablecoins have prompted countries to explore central bank digital currencies (CBDCs). In the wake of COVID-19, CBDCs have also been discussed as a way to improve stimulus distribution. CBDCs are sometimes viewed as synonymous to, or as replacements for, digital currencies like Bitcoin, but they represent a meaningful departure from the decentralized protocols inherent to many cryptocurrencies. If CBDCs gain traction, they may actually bolster the value proposition of Bitcoin and other digital currencies. As the discussion around CBDCs intensifies, it’s important to understand what they are, how they would work, and what the implications are for investors. 

Download the full Central Bank Digital Currencies report below.