Central Bank Digital Currency

The Central Bank Digital Currency (CBDC) refers to the fiat currencies that are issued in digital forms by the central banks. CBDCs acts as traditional fiat currencies that are regulated by the central financial system with a singular governing body, such as the sovereign government.

Although the concept of CBDCs is inspired by the blockchain, they have taken a completely different approach, unlike true cryptocurrencies. Much like the U.S Dollar or Japanese Yen, CBDCs are issued by the central banks for their respective nations.

As of now, there isn’t any publicly available CBDC. On the contrary, the idea is implemented in the form of digital currencies, electronic payments, and proof-of-concept projects from various nations.