Author name: Sarv Shiksha

A CBDC (Central Bank Digital Currency) is essentially a digital version of a country’s fiat currency, issued and backed by the central bank. It can be used for electronic payments and can be exchanged for physical currency. It is different from cryptocurrencies like Bitcoin and Ethereum in that it is issued and backed by a central authority, and its value is tied to the country’s fiat currency. The purpose of CBDC is to provide a secure and efficient means of digital payment, and to give central banks more control over monetary policy.