Crypto basics debate

Cryptocurrencies are digital tokens that move on public networks, while central bank digital currencies are digital money issued by a country’s central bank. (federalreserve.gov) Bitcoin’s own documentation says it uses peer-to-peer software with no central authority or bank, and Ethereum describes itself as a decentralized blockchain network powered by ether. Solana says it is a high-performance network for digital transactions and apps, while XRP Ledger materials describe XRP as a separate digital asset with a fixed supply. (bitcoin.org) (ethereum.org) (solana.com) (xrpl.org) Those assets are also divisible. Bitcoin can be split into 100 million units called satoshis, and Ether can be split into 10^18 wei, which lets users send small fractions instead of whole coins. (bitcoin.org) (ethereum.org) Their prices are not set by a government. The United States Securities and Exchange Commission said in January 2024 that spot bitcoin exchange-traded products would list on national securities exchanges, where prices are determined by trading in the market. (sec.gov) A central bank digital currency, by contrast, is a liability of the central bank. The Federal Reserve says a United States central bank digital currency would differ from bank-account money because it would be a claim on the Federal Reserve itself, not on a commercial bank. (federalreserve.gov) The European Central Bank makes the same distinction in its digital euro project. It says a digital euro would be an electronic equivalent of cash, issued by the central bank and available to everyone in the euro area. (ecb.europa.eu) That difference has become a live policy issue because central banks are still studying whether to issue their own digital money. The Federal Reserve says it has made no decision on whether to pursue or implement a central bank digital currency. (federalreserve.gov) In Europe, the work is further along but still not final. The European Central Bank says the digital euro’s preparation phase ran from November 2023 to October 2025, and it is continuing technical work while legislation is debated. (ecb.europa.eu) Globally, the Atlantic Council’s tracker said in July 2025 that 137 countries and currency unions, representing 98% of global gross domestic product, were exploring central bank digital currencies; 49 had pilot projects and three had fully launched one. (atlanticcouncil.org) That is why “crypto” and “central bank digital currency” are not interchangeable terms. One refers to privately created digital assets that run on public or open networks, and the other refers to state-issued digital money that would sit inside a country’s monetary system. (bis.org) (congress.gov)