A CBDC is like a digital version of national fiat money managed by a central bank, often on a permissioned ledger. It promises convenience, speed, and possibly advanced monetary policy tools (like instant stimulus distribution). However, it typically lacks the privacy and decentralized governance seen in Bitcoin. Think of it as a government-run electronic ledger where the central authority can monitor transactions or even freeze accounts.

The appeal for governments is stronger control, reduced cash handling costs, and potential real-time oversight of the money supply. Critics worry about privacy erosion and systemic risks if the central node is compromised or misused. Thus, while CBDCs might adopt some blockchain-inspired tech, they stand philosophically opposed to Bitcoin’s trustless, borderless design.