Central Bank Digital Currencies

Governments are answering crypto with their own version: central bank digital currencies. China's digital yuan is in wide testing, the European Central Bank is developing a digital euro, and over 100 countries are now exploring CBDCs.

Unlike Bitcoin, CBDCs are issued and controlled by central authorities. That raises real privacy concerns: a fully digital currency could let governments track every transaction, freeze accounts instantly, and even program money with expiration dates.