Central Bank Digital Currency

CBDC or Central Bank Digital Currency, is a digital form of national currency issued and backed by the country’s central bank. Unlike cryptocurrencies, CBDCs are issued by a centralized authority, which gives them greater stability and less volatility compared to other digital currencies. Several countries, including China, Sweden, and the Bahamas, have already launched pilot programs for CBDCs, and others are exploring the possibility of issuing their own CBDCs. However, the development and adoption of CBDCs also raise concerns about privacy, cybersecurity, and the potential impact on financial stability and monetary policy.