CBDC (Central Bank Digital Currency) is the generic term for digital currencies issued by central banks. A distinction is made between the following categories:
These are essentially the current fiat currencies (physical banknotes and coins) which are converted into a digital currency. Issued by the central bank of the countries and distributed by the commercial banks – a well-known concept, therefore, where citizens do not have a direct account with the central bank.
CBDC directly from the central bank
This is a concept that the Riksbank is dealing with (project phase), which differs significantly from the “traditional CBDC concept”: every citizen would have an account with the central bank where they could deposit and withdraw their digital money.
Could be just one currency, e.g. the PBOC project, or a little more unconventional as the concept Mark Carney spoke of (a possible new lead currency composed of several currencies).
Andrew Abir, the Deputy Governor of the Bank of Israel, has started to issue digital shekels as the first step…