Tokenized Money Glossary
Central Bank Digital Currency
A central bank digital currency (CBDC) is a digital form of sovereign currency issued directly by a central bank.
Explanation
CBDCs represent central bank liabilities in digital form and may be used for retail payments or financial market settlement. Designs may involve distributed ledger systems or centralized infrastructures depending on policy decisions.
Why it matters
CBDCs represent a potential evolution of public money in response to digital payment innovation.
Related terms