Context:

There is a possible introduction of Central Bank Digital Currencies (CBDCs) to offer more diversified formats of central bank money.

CBDC

• Central Bank Digital Currency is a digital version of so-called “fiat money,” or the regular currency a country uses, as established and regulated by its government.
• It is a digital payment instrument that is denominated in a national currency and issued by a central bank.
• Unlike private virtual currencies whose value is based on its ownership, distribution, and trading on exchanges, a CBDC’s intrinsic value is equivalent to any other form of money issued by the central bank.

CBDCs around the world

• Bank of Thailand
• Bank of Lithuania
• The Riksbank, Sweden’s central bank.