Tuesday 25 April 2023

What is a Central Bank Digital currency?


 A central bank digital currency (CBDC) is one that is issued by a central bank rather than a commercial bank. As with real banknotes and coins, it is a liability of the central bank and denominated in the national currency. CBDCs are distinct from virtual money and cryptocurrencies in that they are or would be issued by a government.


In short, a CBDC could be seen as the opposite of something like a DeFi project which aims to create a decentralized financial environment whilst CBDC technology is centrally controlled.

Read more: https://agrtech.com.au/glossary/central-bank-digital-currency/

No comments:

Post a Comment