How do central bank digital currencies differ from cryptocurrencies?

Central bank digital currencies are like official money made by the government, while cryptocurrencies are more like secret treasure maps created by people online.

Imagine you have a piggy bank that your parents fill with coins and bills, that’s like a central bank digital currency. It's real money, and it comes from a trusted place, like a bank or the government. You can use it to buy toys, ice cream, or even video games.

Now imagine you find a map in the park that leads you to hidden gold coins, those are like cryptocurrencies. They're not made by the government; they’re created by people who use computers to solve tricky puzzles. People trade these coins online, and sometimes their value goes up or down like a rollercoaster.

• Central bank digital currencies are like your piggy bank, safe, official, and backed by the government.
• Cryptocurrencies are more like hidden treasure, fun, exciting, and made by people who love puzzles and online games.