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Central Banks

Definition

Central banks are national financial institutions responsible for a country’s monetary policy and financial stability. These entities manage currency supply, set interest rates, oversee commercial banks, and often act as lenders of last resort, exerting substantial influence over economic conditions. In the digital asset space, central banks are increasingly relevant through their exploration of central bank digital currencies (CBDCs) and their role in establishing regulatory frameworks for cryptocurrencies. Their decisions can significantly affect the broader financial landscape.