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Central Bank Digital Currency (CBDC)

Central Bank Digital Currency (CBDC)

Last Updated: January 23, 2026

Central Bank Digital Currency (CBDC) is a digital form of a country's fiat currency, issued and regulated by its central bank.

Central Bank Digital Currency (CBDC) is a digital representation of a nation's official currency, issued and controlled by its central bank. Unlike cryptocurrencies, CBDCs are centralized and have the backing of the government, ensuring stability and regulation. They aim to enhance payment systems, increase financial inclusion, and provide more efficient monetary policy implementation. By offering a digital alternative to cash, CBDCs could streamline transactions and reduce costs. However, their implementation involves challenges related to privacy, security, and potential impacts on traditional banking systems.