Central Bank Digital Currency (CBDC)

A CBDC is a digital, national currency that is a liability of that nation’s central bank.

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” describes a stablecoin with the reserves backing its value held in a central bank master account.