Glossary

Central Bank Digital Currency (CBDC)

A CBDC is a digital national currency that is a direct liability of a country’s central bank. This means the central bank is the ultimate authority, possessing absolute power over the network and its users.

Retail Central Bank Digital Currency (Retail CBDC)

A “retail CBDC” is a CBDC meant for retail, or consumer, use. While the technical details do differ significantly, it would generally resemble a debit card or prepaid card that is provided by the central bank.

Intermediated Central Bank Digital Currency (Intermediated CBDC)

An “intermediated CBDC” is a CBDC provided for retail use, but the accounts or wallets those CBDCs are held in are maintained by the private sector (e.g., banks, credit unions, fintechs, etc.).

Wholesale Central Bank Digital Currency (Wholesale CBDC)

A “wholesale CBDC” would be restricted to financial institutions for use during interbank settlement. In other words, a wholesale CBDC would serve as a way for banks to send money between themselves.

Synthetic Central Bank Digital Currency (Synthetic CBDC)

A “synthetic CBDC” a CBDC in name only. The use of this term is not recommended because it is used to refer to a stablecoin with the reserves backing its value held in a central bank master account. Therefore, it is not a CBDC at all.