Notitia
Sovereign money, in digital form.
A CBDC is a digital version of a country's money, issued and guaranteed by the central bank - not to be confused with a decentralised crypto. The digital euro is one example under study.
It promises modern, inclusive payments, but raises questions about privacy and the disintermediation of commercial banks.
You hold €2,500 in digital euro, under the envisaged €3,000 per-person cap, and receive a €1,000 transfer.
The cap protects bank deposits from a sudden run. A pro tells apart central bank money, bank money and private stablecoins: three different risks.
Test your understanding with a quick interactive quiz.