Central Bank Digital Currency
Central Bank Digital Currency (CBDC) is a digital form of a country's fiat currency, issued and regulated by the central bank. It represents a direct liability of the central bank, unlike cryptocurrencies or private digital currencies, and is designed to function as legal tender for everyday transactions. CBDCs aim to enhance payment efficiency, financial inclusion, and monetary policy implementation in the digital economy.
Developers should learn about CBDCs as they are becoming a critical area in fintech and blockchain development, with many countries exploring or piloting implementations. This knowledge is essential for building secure, scalable digital payment systems, integrating with central bank infrastructures, and developing applications for retail or wholesale CBDC use cases. It's particularly relevant for roles in banking, financial services, regulatory technology (RegTech), and blockchain projects involving digital assets.