What is a central bank digital currency?

Have a question? What is a Central Bank Digital Currency? A CBDC is a digital form of central bank money that is widely available to the general public. "Central bank money" refers to money that is a liability of the central bank.

Are Cryptos a threat to central banks?

Cryptos Are a Threat to Central Banks. Why It Goes Beyond Bitcoin. | Barron's Most of us go to the Bahamas for the sun and surf. Central bankers may be visiting for another reason: to check out the country’s new digital currency, the Sand Dollar. The Bahamas is one of three countries to launch a digital currency, along with China and Cambodia.

What is a cryptocurrency and how does it work?

A cryptocurrency is a decentralized digital currency, meaning there's no central party that controls it. Transactions are processed and recorded on a blockchain, which is a public, distributed ledger. As the name implies, a central bank digital currency is controlled by a central bank.

Are central banks working on a CBDC?

In a survey released in January 2020, the Bank for International Settlements (BIS), the international central bank coordinator, asked 66 central banks whether they are working on a CBDC; 80% of the central banks said they are exploring the idea, while 10% are "imminently close" to launching a CBDC for the general public.