Digital Central Bank Money

Definition ∞ 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.