CBDC Pilot

Definition ∞ A CBDC pilot refers to a trial program conducted by a central bank to test the practical implementation and functionality of a Central Bank Digital Currency. These pilots assess various aspects, including technological infrastructure, user experience, and potential economic impacts. The objective is to gather data and feedback before a wider rollout. Such initiatives explore both retail and wholesale applications of digital fiat currency.
Context ∞ News frequently reports on CBDC pilots as central banks globally evaluate the feasibility of digital versions of their national currencies. Key discussions often revolve around privacy concerns, financial inclusion, and the potential disruption to existing payment systems. The outcomes of these pilots will heavily influence future monetary policy and digital currency adoption strategies.