A retail central bank digital currency is a digital central bank liability designed for use by the general public in everyday payments and monetary holdings.
Retail CBDC would give households and businesses access to a digital form of central bank money alongside cash and commercial bank deposits. Design choices can include account-based or token-like access, intermediated distribution through private payment providers, privacy protections, holding or transaction limits, offline functionality, and remuneration. The central bank remains the issuer even when private intermediaries provide wallets or customer-facing services.
Retail CBDC is intended for broad public use. Wholesale CBDC is designed primarily for eligible financial institutions and financial-market settlement.
Retail CBDC design can affect payment competition, access to public money, financial intermediation, privacy, resilience, and the role of commercial banks.
A central bank can issue a digital currency that households access through regulated wallet providers for person-to-person and merchant payments.