word

Central Bank Digital Currency

SEN-trul bank DIJ-ih-tul KUR-en-see

/ˈsɛntrəl bæŋk ˈdɪdʒɪtəl ˈkɜːrənsiː/

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Syllable breakdown

centralbankdigitalcurrency

Dictionary meaning

A digital form of a country's sovereign currency issued and regulated directly by the central bank, representing a liability of the central bank rather than a commercial bank; unlike cryptocurrencies, CBDCs are centralised and government-backed, intended to modernise the financial system and improve the efficiency of payments.

Examples

China's digital yuan is one of the most advanced central bank digital currency pilots in the world.
Policymakers debate whether a central bank digital currency would enhance financial inclusion or threaten commercial bank deposits.

Synonyms: CBDC, digital currency, sovereign digital currency

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