Central bank digital currencies

Central bank digital currencies (CBDCs) are essentially digital forms of a fiat currency, issued and controlled by central banks. They have a value that is directly proportional to the value of that nation's fiat currency. Due to the fact that, unlike cryptocurrencies, they are pegged/backed by a national currency issued by a central bank, they gravitate to being less volatile but offer a powerful new tool for bankers and governments. CBDCs are typically created using blockchain technology but they are most likely to have more of a centralised structure because central bankers will wish to have control - although the most widely used CBDC (the Chinese e-cny) is a CBDC not run on a blockchain. Over a hundred CBDCs have been in the planning or development phases as of July 2022, with two already in circulation: the eNaira in Nigeria (unveiled in October 2021) and the Bahamian sand dollar (unveiled in October 2020). Furthermore, for the Bahamas, the need to assist the unbanked and under-…