central bank digital currency primer


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PDF Central Bank Digital Currencies in the Post-pandemic Era

1 sept 2023 · A Primer for Supervisors' Etats Unis: International Monetary Fund Bank of England 2020 'Central Bank Digital Currency—Opportunities 

PDF Central bank digital currencies: motives economic implications and

A set of questions particularly on the cross-border dimensions of CBDCs remains unresolved and calls for further work to expand the research frontier

  • What is the central bank digital currency backed by?

    CBDCs, backed by a government and controlled by a central bank, would give households, consumers, and businesses a secure means of exchanging digital currency.

  • When did CBDC start?

    Although the term "CBDC" did not become widely used until after 2019, central banks have researched and launched digital currency projects for decades.
    For example, Finland's central bank issued the Avant stored value e-money card in the 1990s.

  • What technology is used in central bank digital currency?

    CBDC operates on a secure, transparent blockchain network, and it uses blockchain technology to create an immutable record of all transactions.
    This means that all transactions are recorded on a decentralized ledger, making it impossible to modify or tamper with the data.

  • If designed appropriately, CBDCs could allow central banks to modernize payment systems and future-proof central bank money as the pace and shape of digitalization continues to evolve.

Central bank digital currencies (CBDCs) are digital versions of cash that are issued and regulated by central banks. As such, they are more secure and inherently not volatile, unlike crypto assets. While some may assume that CBDCs are a new concept, they have in fact been around for three decades.
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