web3/concepts/cbdc.md

Central Bank Digital Currency

A digital currency issued by a central-banks often shorted as CBDC. The implementation and wise-scale use of CBDCs is a hypothetical technology. Many experimental implementations do not use a blockchain and are based on centralized database technologies and do not require a consensus-algorithm. This makes CBDCs technical underpinnings significantly distinct from crypto asset which are allegedly decentralized.

CBDCs are either based on an account model or token model.

CBDCs have been critized as being an extension of the surveillance state that conflicts with financial privacy norms.

Examples

• Chinese Digital Yuan
• Bahama Sand Dollar

References

• [@kiff_survey_2020]
• [@bilotta_cbdcs_nodate]
• [@nabilou_central_2019]