Central Bank Digital Currencies and Decentralization: Crypto's latest dilemma

Abstract

From the first Chinese paper notes and coins to the emergence of cryptocurrencies like Bitcoin, Litecoin, and Ethereum, money has come a long way. Now, we’re witnessing the rise of decentralized finance (DeFi), an absolute game changer that has attracted many enthusiasts who believe in its potential to revolutionize the financial industry. But as DeFi and cryptocurrencies gain popularity, national governments are looking to regulate it and introduce National Digital Currencies, creating a dilemma for DeFi supporters—will it remain an alternative to traditional centralist models, or will it be forced into the same financial structure it initially tried to escape?