What is Central Bank Digital Currency (CBDC) and how is it related to cryptocurrency?

Central Bank Digital Currency (CBDC) is a form of digital money issued and maintained by a national central bank. Unlike cryptocurrencies like Bitcoin, which are decentralized, CBDCs are state-controlled and can be used to enhance financial systems, speed up transactions, and ensure financial stability. Despite similarities with cryptocurrencies in digital form, CBDCs lack anonymity and are subject to government regulation. The advantages of CBDCs include ease of use and increased trust, but they also raise concerns about privacy and centralized control.