Central Bank Digital Currencies

Central Bank Digital Currencies (CBDCs) are digital forms of a country’s official money issued and backed by the central bank. Unlike cash or bank deposits, CBDCs are digital tokens representing national currency, designed to provide a secure, efficient, and accessible way for people to pay and transfer money electronically. They aim to modernize the financial system, reduce costs, and enhance payment security, while maintaining government oversight. CBDCs are not cryptocurrencies like Bitcoin; they are centralized, regulated digital currencies directly managed by the central bank, ensuring trust and stability in the financial system.