A Central Bank Digital Currency (CBDC) is a digital form of a nation’s fiat money issued by its central bank. Unlike cryptocurrencies, CBDCs are stable, as their value is directly tied to the country’s currency.

There are two types:

• Wholesale CBDCs: Used by banks for settlements and liquidity management.

• Retail CBDCs: Digital cash for businesses and consumers, available as token-based (like cash) or account-based (ID required).

Benefits include faster payments, lower cross-border costs, financial inclusion for the unbanked, and stronger monetary policy control.

CBDCs combine the innovation of crypto with the trust and stability of central banks, shaping the future of money.