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What's the future of crypto?Frequently Asked Questions. 1. What is a central bank digital currency (CBDC)? A CBDC is a digital form of central bank money that is widely. The dizzying rise of bitcoin and other cryptocurrencies has created new challenges for governments and central banks. Increasing popularity and high levels. A CBDC is virtual money created by a central bank. As cryptocurrencies and stablecoins become popular, central banks provide alternatives.