By definition, a central bank digital currency (CBDC) is a legal tender in digital form, similar to, and exchangeable with, fiat currency. However, unlike the digital representation of money, a CBDC is issued and regulated by central banks or other authorized entities.
CBDCs are a key topic of interest for major global central banks, with many of them evaluating ways to integrate digital currencies into their banking systems. According to a 2021 CBDC survey conducted by BIS covering 65 central banks, a whopping 86% of participants are actively engaged in some form of CBDC work.
What is the reason for this sudden rise in interest among central banks? What are the possible implications for the financial ecosystem and how can financial institutions prepare themselves for the changes to come? We will explore answers to all these questions in our detailed report, Central Bank Digital Currencies Are Here – Is the Global Financial System Ready?