Wholesale CBDC Settlement

Definition ∞ Wholesale CBDC Settlement refers to the use of a central bank digital currency for large-value transactions and interbank transfers between financial institutions. This form of CBDC is restricted to authorized entities, unlike a retail CBDC accessible to the general public. Its purpose is to enhance the efficiency and safety of wholesale payment systems.
Context ∞ News about Wholesale CBDC Settlement provides context for understanding central banks’ efforts to modernize financial market infrastructures. Reports often highlight pilot projects and discussions on how it can reduce settlement risk and operational costs for banks. This development signifies a significant evolution in the plumbing of global finance.