A Central Bank Digital Currency (CBDC) is a digital currency issued by a central bank.
CBDCs are different from the cryptocurrencies mainly in that CBDC has a central authority while cryptocurrencies work headless.
This post discusses about the definition of CBDC.
Early CBDC
As of 2023, there are two CBDCs in use:
- Jamaica Digital Exchange / Jam-Dex (Bank of Jamaica, Jamaica)
- eNaira (Central Bank of Nigeria, Nigeria)
The most important CBDC projects under developement are:
- Digital euro (European Central Bank, EU)
- Digital dollar (the Fed, USA)
- Britcoin (Bank of England, UK)
If you want to read more about the digital euro, you can read this post.