Central Bank Digital Currency (CBDC): Here is All You Need to Know
As the name suggests, CBDC is the central bank-issued digital currency. It is an electronic form of sovereign currency that will appear as a liability on a central bank’s balance sheet just like physical currency. Instead of printing money, the central bank, backed by the central government, issues electronic coins or money. CBDCs are not meant to replace cash but to coexist as additional payment methods. CBDCs should be exchangeable at par with cash.