CBDC
Business & Finance abbreviation · Banking
| Stands for | Central bank digital currency |
|---|---|
| Categories | Business & Finance |
CBDC stands for Central bank digital currency, a banking abbreviation also used in technology.
Digital form of a country's money issued directly by its central bank, as distinct from commercial bank deposits or private cryptocurrencies. A retail CBDC would let the public hold central bank money electronically, while wholesale CBDCs are used between financial institutions.
Example: China's e-CNY pilot is the largest test of a retail CBDC so far.
Usage notes
The Bahamas' Sand Dollar, launched in 2020, was among the first retail CBDCs, followed by Nigeria's eNaira in 2021. The European Central Bank is preparing a possible digital euro, while US policymakers have opposed a retail digital dollar. Supporters cite cheaper payments; critics raise privacy and bank-funding concerns.
Related abbreviations
More banking abbreviations
- BIC – Business Identifier Code
- BIN – Bank identification number
- BSA – Bank Secrecy Act
- BSB – Bank-State-Branch
- CAR – Capital adequacy ratio
- CASA – Current account and savings account
- CD – Certificate of deposit
- CDD – Customer due diligence
- CET1 – Common Equity Tier 1
- CFT – Countering the financing of terrorism
- CHAPS – Clearing House Automated Payment System
- CHIPS – Clearing House Interbank Payments System