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Central Bank Digital Currency (CBDC)
What is CBDC?
Similar to cryptocurrency, central bank digital currencies are electronic tokens. But a central bank issues them. They are correlated with the value of the country's fiat currency.
Many countries are creating CBDCs, and some have even started using them. Given that so many countries are considering how to make the shift, it is essential to understand digital currencies and what they mean for society. Offering businesses and consumers financial security, privacy, transferability, ease of use, and accessibility is the fundamental goal of CBDCs. Additionally, CBDCs may lessen the cost of running a complex financial system, reduce the cost of cross-border transactions, and provide more cheap options to customers who now transfer money via traditional methods.