Central Bank Digital Currency
a.k.a. CBDC
A digital form of a country's money issued directly by its central bank, as opposed to private cryptocurrencies.
A central bank digital currency (CBDC) is cash, but digital and issued by the central bank itself. Your bank balance today is a claim on a commercial bank; a CBDC would be a direct claim on the central bank.
China's digital yuan is the most advanced large pilot, and many countries are studying the idea. Supporters point to faster, cheaper payments; critics worry about privacy and the effect on banks. Unlike crypto, a CBDC is centrally controlled and has the same value as the national currency.
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