Digital central bank money refers to a central bank digital currency (CBDC) issued and backed by a nation’s central bank. Unlike cryptocurrencies, it is a direct liability of the central bank, providing the highest form of sovereign money. This digital form aims to modernize payment systems and enhance financial stability. It differs from commercial bank digital money.
Context
The development and potential deployment of digital central bank money are prominent topics in global financial news and discussions about monetary policy. Reports often focus on pilot programs, regulatory frameworks, and the implications for commercial banks and existing payment networks. Understanding this concept is crucial for following news on national digital currency initiatives and their impact on the broader digital asset landscape.
German financial institutions piloted DLT-based bond issuance and T+0 settlement using digital central bank money to validate capital market efficiency gains.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
