Central Bank Digital Currencies (CBDCs)

Central Bank Digital Currencies (CBDCs) are digital forms of a country's official money issued directly by the central bank. Unlike physical cash or bank deposits, CBDCs exist electronically and are designed to be a secure, digital alternative for everyday transactions. They aim to improve payment systems, reduce transaction costs, and enhance financial inclusion. CBDCs are backed by the government, ensuring their stability and trustworthiness. They do not replace traditional money but complement existing forms, allowing individuals and businesses to use them for secure, efficient digital payments within the economy.