A Central Bank Digital Currency (CBDC) is a central bank digital currency that could use an electronic record or digital token to represent the digital form of a nation's currency. A CBDC is issued and managed directly by the central bank and could be used for a variety of purposes by individuals, businesses, and financial institutions as well as by individuals to pay businesses, shops or each other, or between financial institutions to settle trades in financial markets. CBDCs are a new type of money governments those are experimenting with the blockchains, and in various stages of development around the world. A CBDC is centralised that differs from cryptocurrencies, where cryptocurrencies are decentralised.
Related Definitions in the Project: The Commercial Definitions
