## Digital Currency Systems: How Do CBDCs Work?
The era where cash in your pocket loses its physical form and exists only on smartphones or computers—such a scenario is already approaching reality. With over 130 countries worldwide developing central bank digital currencies (CBDCs), it’s worth reconsidering what CBDCs are and how they might impact the future of finance.
## CBDCs as an Evolution of Fiat Currency
A CBDC is essentially a digital version of a country’s fiat currency issued and managed by the central bank. Unlike existing currencies like the US dollar or euro, CBDCs are fully backe
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