Central Bank Digital Currency (CBDC) | Practical Law

Central Bank Digital Currency (CBDC) | Practical Law

Central Bank Digital Currency (CBDC)

Central Bank Digital Currency (CBDC)

Practical Law Glossary Item w-032-2803 (Approx. 3 pages)

Glossary

Central Bank Digital Currency (CBDC)

A digital currency or virtual currency that is issued by a sovereign central bank as a digital representation of a certain denomination of fiat currency, such as one US dollar. The value of a CBDC does not fluctuate other than as the value of the underlying fiat currency moves in relation to other fiat currencies.