A central bank digital currency is digital money issued as a liability of a central bank and denominated in its monetary unit. The issuer relationship distinguishes it from commercial-bank deposits and privately issued stablecoins, even when all three appear as balances in an app.
Retail and wholesale uses
A retail CBDC is intended for use by households and businesses. A wholesale CBDC serves eligible financial institutions, for example in settling payments or securities transactions. Access and distribution can involve intermediaries; a central-bank liability does not necessarily mean every user has a conventional account directly with the central bank.
Technology does not define the claim
CBDC designs can use different ledger arrangements and do not inherently require a public blockchain, mining, or permissionless participation. The monetary authority remains responsible for issuance within its legal framework. Digital form alone does not turn the currency into an independently governed crypto asset.
Design choices affect users
Privacy protections, identity checks, holding limits, interest, and payment features depend on the jurisdiction and implementation. Proposals, pilots, and public availability are different stages. Potential payment benefits must be considered alongside operational resilience and effects on bank funding. Maintaining a nominal currency unit also does not guarantee unchanged purchasing power: inflation can still reduce what that money buys.