Central bank digital currency (CBDC) refers to a digital form of national currency issued and regulated by a country’s central bank. CBDC represents a digital representation of fiat currency, providing a digital counterpart to traditional physical cash. It is a digital form of money that is backed by the central bank and operates within a regulated framework. CBDC aims to combine the benefits of digital payments with the trust and stability associated with traditional fiat currencies. Let’s explore CBDC in more detail. CBDC represents a significant advancement in the evolution of money. It is a digital form of currency that is issued, regulated, and guaranteed by the central bank of a country. Unlike cryptocurrencies such as Bitcoin, which operate independently of central banks, CBDC is fully controlled by the central bank and operates within the existing financial system. Objectives of CBDC The introduction of CBDC is driven by several key objectives: Financial Inclusion: CBDC aims to provide equal access to financial services for all individuals, including those who are unbanked or underbanked. By leveraging digital infrastructure, CBDC can potentially increase financial inclusion and reduce the reliance on cash. Efficiency and Cost Reduction: CBDC can improve the efficiency of financial transactions by leveraging … Continue reading What Is Central Bank Digital Currency (CBDC)?