There has always been a haze around the terms crypto, NFTs, and electronic money, such as CBDCs, and it was apparently impossible to define or differentiate one from the other. But now it has been sorted out, and all of these elements have been categorized under their appropriate status, which is something of a milestone in itself.
CBDCs, crypto, and NFTs were talked under the same umbrella, which made it extremely difficult for novices or beginners to draw a comparison between all of these. Professionals might not have any kind of problem drawing the differences between these terms, but for a beginner, it was nothing less of a nightmare; thankfully, it is finally coming to an end.
A joint committee between Uniform Law Commission and American Law Institute did take place to discuss and regulate the expected specifications of the digital assets in the manner these were intended to fall from the very beginning, a difference between electronic money and crypto.
The amendments that have been made will be enacted in all of the states, but the final implementation might change based on the state in which it is being finalized or referred to. The amendments to the Uniform Commercial Code were approved in a broad meeting that took place in the month of July, and the changes were reflected in Articles 9 and 3, while Article 12 contains more concise updates on the matter.
Differentiation Between Crypto, NFTs and CBDCs
These amendments are somehow perceived to be offering “controllable electronic records” that will deal with not only the present blockchain-based entities but all of the other future entries that will take place or come to be under the same umbrella. All cryptocurrencies and NFTs are under this umbrella, which means that these do live on a blockchain medium and are transferable from one medium to another.
Another name for these entities is the ‘records stored on an electronic medium.’ Electronic money, on the other hand, has been revised under the “money” category and consists of digital fiat currencies such as CBDCs, thus ending the long-lasting parade of what a CBDC is and how it is different from crypto.
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