A central bank digital currency (CBDC) is a form of digital currency issued by a country's central bank. It is similar to cryptocurrencies, except that its value is fixed by the central bank and is equivalent to the country's fiat currency. Many countries are developing CBDCs, and some have even implemented them.
What is a digital currency?
Digital currencies are part of that story, and central banks have started to take note. Central bank digital currencies (CBDCs) are the digital form of a government-issued currency that isn’t pegged to a physical commodity.
How do central banks manage digital currencies?
The central banks issuing and managing these digital currencies are national financial authorities that oversee a country’s currency, supply of money and monetary policy – like setting interest rates, which change the cost of borrowing. What is the Forum doing to improve the global banking system?
