What is Central Bank Digital Currency (CBDC)?

A Central Bank Digital Currency (CBDC) is a digital version of a country's fiat currency issued and backed by the central bank. It can be used for electronic transactions and held in digital wallets. It works similarly to physical cash but is digital and can be transferred and stored electronically. Transactions using CBDCs are recorded on a digital ledger, similar to a blockchain, and can be tracked and verified by the central bank. CBDCs are still in the early stages…