Central bank digital currency (CBDC)

Central bank digital currency (CBDC) is a digital form of legal tender that is backed by a central bank and operates as a substitute for physical bank notes and coins. CBDC is essentially a digital version of traditional currency that can be used as a medium of exchange, a store of value, and a unit of account. It is created and issued by the central bank, and can be stored and transferred using digital wallets and various other digital platforms. CBDC is being developed in response to the increasing popularity of cryptocurrencies, which have posed challenges for traditional financial institutions and central banks. CBDC aims to provide a safe, secure, and efficient way of transacting in digital currencies, while also maintaining the stability and integrity of the financial system. Overall, the development of CBDC is seen as an important evolution in the way we transact and exchange value, particularly as technology continues to transform the way we live and work.