What is central bank digital currency?

Question

Accepted Answer

Central bank digital currency (CBDC) is a digital form of a country's fiat currency issued and regulated by the central bank.

CBDC is a digital version of a country's currency that is issued and regulated by the central bank.
It is designed to function as a secure and efficient medium of exchange, just like physical cash.
CBDC can be used for both retail and wholesale transactions, enabling individuals and businesses to make digital payments directly to the central bank.
Unlike cryptocurrencies like Bitcoin, CBDC is centralized and backed by the government, ensuring stability and trust.
Examples of CBDC projects include the digital yuan in China, the e-krona in Sweden, and the digital dollar in the United States.

Accepted Answer

Cbdc is like country's fait currency