CBDC (Central Bank Digital Currency)


A Central Bank Digital Currency is a digital form of a country's fiat currency, issued and regulated by the nation's central bank. CBDCs aim to provide a new means of payment that combines the convenience of digital currencies with the stability and regulatory framework of traditional money.


CBDCs are gaining attention as central banks around the world explore digital innovations in finance. They could offer benefits such as improved financial inclusion, reduced transaction costs, and improved monetary policy effectiveness. However, CBDCs also raise questions about privacy, financial stability, and the changing role of commercial banks.