Misconception 1: A CBDC is a cryptocurrency
A CBDC is a digital currency issued by a central bank, and therefore has legal tender status. It has the same functions as physical money, so it can be thought of as a digital form of cash. In contrast, cryptocurrencies are community money. They are not backed by an official institution, so they are unregulated, with volatile value movements. Stablecoins, which are one type of cryptocurrency, are closely linked to a national currency or other assets to prevent exchange rate fluctuations, but providers are usually private companies with commercial interests.