Introducing CBDCs: digital currencies issued and managed by central banks

An introduction to CBDCs Commercial and residential establishments would benefit significantly from using CBDCs, the digital equivalent of central bank digital currency, to store value and make payments. The CBDC is an electronic form of central bank money that has the potential to be widely used for payment and storage purposes by families and companies. The US dollar and other national units are used as the basis for this digital currency that central banks issue. It is liable to the central bank in the same way that actual cash is and serves as legal tender. This makes CBDCs a more secure and less volatile digital currency option than others. The following table provides a synopsis of CBDCs' aims and common misunderstandings regarding them.