CBDC is a digital form of a country’s official currency (like the US dollar or the Euro) that is issued and regulated by the country’s central bank. CBDCs are centralized and controlled by a government authority.

CBDCs are created and issued by a country’s central bank, making them the digital equivalent of the physical currency issued by the government.

You can use them to pay for goods and services, settle debts, and fulfill tax obligations, just like traditional currency.

The central bank can influence the money supply, implement monetary policy, and monitor transactions.

CBDCs exist in digital form and can be stored in electronic wallets or bank accounts. They are designed to make digital payments more efficient and accessible.

CBDCs can be designed with various privacy and security features. Some central banks might prioritize privacy, while others could implement measures to monitor and trace transactions for regulatory purposes.

They are expected to be compatible with existing payment systems and infrastructure, allowing for seamless integration into the existing financial ecosystem.

In summary, Central Bank Digital Currency is a government-issued digital form of a country’s official currency. It is a digital version of traditional money, intended to make digital transactions more accessible and efficient.