A retail central bank digital currency (CBDC) is a digital form of sovereign money issued directly by a central bank for use by the general public in everyday payments. Unlike wholesale CBDCs, which serve interbank settlement, retail CBDCs target consumers and merchants and may use account-based or token-based designs over distributed or centralised ledgers. They aim to provide a public digital payment instrument with central-bank credit safety.
Content
- Design choices span account-based versus token-based models, offline capability, and privacy tiers. Retail CBDCs seek to combine the safety of central-bank money with the convenience of digital payments while managing disintermediation risk to commercial banks.