Fiat Digital Currency
Fiat currency is currency that a government has declared to be legal tender. It is different from cryptocurrency or virtual currency like Bitcoin which is not legal tender and not backed by government.
Fiat Digital Currency (or Central bank digital currency) is the digital form of fiat money which is currency established as money by government regulation or law. As opposed to private digital tokens, fiat digital currency will be issued by central bank
.Fiat Digital Currency will constitute liability of central bank, and will be in circulation in addition to widely used paper and metallic currency.They will be based on blockchain technology which is backbone of unregulated virtual currencies like bitcoin.
They will be legal tender as compared to virtual currencies that raise concerns of consumer protection, market integrity and money laundering, among others. Blockchain technology behind it has potential benefit for financial inclusion and enhancing efficiency of financial system.
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