Origin Dictionary / OD-092

CBDC

The important part of CBDC is who owes the money.

01Dictionary Meaning

A central bank digital currency, or CBDC, is a digital form of central bank money intended for eligible users, whether the public or specified financial institutions.

02What People Think

"My money is already on a screen, so this is the same thing."

03What’s Underneath

A conventional bank deposit is a claim on a commercial bank. A CBDC is a direct liability of the central bank, even if intermediaries help people access it.

Retail and wholesale designs serve different users. Privacy, access, transfer limits and whether a blockchain is used are design and policy choices, not features established by the acronym alone.

The practical change depends on how the arrangement fits with banks, payment providers and existing money. A new digital form does not supply one universal operating model.

04The Game

Who can hold it, who provides access, and how are privacy, availability and responsibility arranged?

05One Line

Digital money can look identical on a screen while being owed by different institutions.

Related terms

Explore M6 Library

M6

Global Nodes & Geopolitical Finance

Follow the institutional design behind public digital money.

Library collection forthcoming. Explore the matrix and its Dictionary entries.

References 1
← Back to Dictionary