CBDC (Central Bank Digital Currency)
A digital form of a national currency issued by the central bank.
Detailed Description
CBDC (Central Bank Digital Currency)
What is the main difference between CBDCs and cryptocurrencies?
CBDCs are issued and regulated by central banks and maintain a stable value, whereas cryptocurrencies are decentralized and often volatile.
What are the two main types of CBDCs?
The two main types of CBDCs are retail CBDCs, for public use in everyday transactions, and wholesale CBDCs, for financial institutions and interbank transactions.
How can CBDCs enhance financial inclusion?
CBDCs can provide a digital payment option that helps unbanked populations access financial services, promoting broader economic participation.
What challenges do CBDCs face?
CBDCs face challenges such as technological infrastructure development, privacy concerns, potential impacts on the banking sector, regulatory frameworks, and public acceptance.
What future trends are expected for CBDCs?
Future trends for CBDCs include increased adoption, interoperability with other digital currencies, integration with blockchain technology, evolving regulatory frameworks, and a focus on sustainability.