Central bank digital currencies (CBDCs)

Digital forms of a country's official currency that are issued and regulated by the nation's central bank. They are designed to be a secure and efficient alternative to physical cash and traditional bank accounts, leveraging modern digital payment technologies. CBDCs aim to enhance payment systems, promote financial inclusion, and potentially provide a tool for implementing monetary policy more effectively. Unlike cryptocurrencies, CBDCs are centralized and maintain the same value as the fiat currency they represent, ensuring stability and trust in the currency.