# \#1 Blog post on CBDC: : What is a Central Bank Digital Currency and why should people prefer CBDC over bank accounts?

**URL:** <https://forum.canton.network/t/1-blog-post-on-cbdc-what-is-a-central-bank-digital-currency-and-why-should-people-prefer-cbdc-over-bank-accounts/501>\
**Category:** Announcements\
**Tags:** daml, cbdc\
**Created:** [May 19, 2020, 8:21pm UTC](https://forum.canton.network/t/1-blog-post-on-cbdc-what-is-a-central-bank-digital-currency-and-why-should-people-prefer-cbdc-over-bank-accounts/501 "2020-05-19T20:21:42Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![andreolf](https://yyz2.discourse-cdn.com/flex034/user_avatar/forum.canton.network/andreolf/32/491_2.png) [@andreolf](https://forum.canton.network/u/andreolf)\
**Post date:** [May 19, 2020, 8:21pm UTC](https://forum.canton.network/t/1-blog-post-on-cbdc-what-is-a-central-bank-digital-currency-and-why-should-people-prefer-cbdc-over-bank-accounts/501/1 "2020-05-19T20:21:42Z")

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[Here](https://blog.daml.com/daml-driven/what-is-a-central-bank-digital-currency-and-why-should-people-prefer-cbdc-over-bank-accounts)’s a great blog post by @darko on CBDC: _What is a Central Bank Digital Currency and why should people prefer CBDC over bank accounts?_

here is a quick snapshot:

 ![CBDC_present_and_future_diagram_futurebanks](https://canada1.discourse-cdn.com/flex028/uploads/daml/original/1X/bce9157e01035ae264f7dbe0f90a230d7984296b.png)

**In a series of posts, we will cover various aspects of this topic, including economic significance, modeling approaches and properties, and what benefits distributed ledgers might bring for CBDC.**

Some of the topics discussed are:  
❇ What is CBDC and how does it differ from physical cash?  
❇ How does CBDC differ from the money in your bank account and what are the benefits of CBDC?  
❇ What would be the future role of banks and how do loans currently work?  
❇ What would be the effect of CBDC on the economy and what would be possible solutions?  
❇ Why should people prefer CBDC over bank account?

In the next installment of this blogseries, we will look at what technical properties a CBDC solution should have. We are going to explain how such a digital currency could look like using [DAML](https://blog.daml.com/daml-driven).

### If you want to master DAML smart contracts, you should also read:

- [Interoperability between different markets](https://blog.daml.com/daml-driven/the-integral-role-of-contract-language-in-dlt-interoperability) and how DAML fits,
- Programming Smart contracts - [A look into DAML, Kotlin & Java](https://blog.daml.com/daml-driven/programming-smart-contracts-a-look-into-daml-kotlin-java)
- [How easy it is to learn DAML,](https://blog.daml.com/daml-driven/how-much-effort-is-required-to-become-a-daml-driven-developer)
- Some of the reasons [why DAML and not Java or Solidity,](https://blog.daml.com/daml-driven/what-properties-must-an-enterprise-smart-contract-language-have)
- [DAML brings a paradigm shift as a programming language,](https://blog.daml.com/daml-driven/a-new-language-for-a-new-paradigm-smart-contracts)
- How [privacy in DAML](https://blog.daml.com/daml-driven/keeping-smart-contracts-private-is-hard-unless-you-truly-understand-them) differs from the rest and why it’s better.