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CBDC
(Central Bank Digital Currency)
A CBDC is a digital form of fiat money issued by central banks (e.g., FedNow for the Fed, digital euro for the ECB). Combines cash's trust with digital efficiency, unlike volatile cryptocurrencies like BTC.
Over 130 countries are exploring CBDCs (Bahamas' Sand Dollar was first in 2020). Retail CBDCs (public-facing) aim to replace cash, while wholesale CBDCs (bank-to-bank) streamline settlements. Privacy concerns persist—China's digital yuan allows transaction tracking. The IMF warns CBDCs could disrupt commercial banks if deposits migrate. The U.S. lags due to political opposition, while Jamaica and Nigeria lead emerging market adoption.
Over 130 countries are exploring CBDCs (Bahamas' Sand Dollar was first in 2020). Retail CBDCs (public-facing) aim to replace cash, while wholesale CBDCs (bank-to-bank) streamline settlements. Privacy concerns persist—China's digital yuan allows transaction tracking. The IMF warns CBDCs could disrupt commercial banks if deposits migrate. The U.S. lags due to political opposition, while Jamaica and Nigeria lead emerging market adoption.