A central bank digital currency (CBDC) is digital money denominated in a country’s currency and issued as a direct liability of its central bank. That liability—not whether it uses blockchain—is what makes it a CBDC.
What the definition means
The Bank for International Settlements (BIS) defines a CBDC as “a digital payment instrument, denominated in the national unit of account, that is a direct liability of the central bank.” BIS, Annual Economic Report 2021, Chapter III
As an Amazon Associate I earn from qualifying purchases.
In practical terms, the central bank is the issuer, the money is in digital form, and the holder’s claim is against the central bank. The term alone does not say who may hold it, whether it pays interest, whether users access it through accounts or tokens, or what technology records transfers. Those are design choices made for each system.
Retail and wholesale CBDCs serve different users
Retail CBDC
A retail, or general-purpose, CBDC is intended for the public and everyday payments. It would make digital central-bank money available to eligible users.
#1 Best Overall
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Enjoy Bluetooth connectivity, iOS access, and hours of battery use with this mobile-first, secure backup signer. Freedom you can depend on.
- Genuine Check: confirm your signer is authentic during setup with the Ledger Wallet app.
- Protect your signer: keep it in mint condition at all times with a bespoke Pod or Case to avoid scratches and everyday wear and tear.
Wholesale CBDC
A wholesale CBDC is intended for eligible financial institutions, rather than the general public. Its focus is transactions such as interbank transfers and wholesale settlement. It resembles central-bank reserves in its intended users, while a particular design could add features associated with newer technologies. BIS, Central bank digital currencies: Executive Summary
How CBDC differs from other digital money
Several kinds of money and payment systems can be digital or support fast payments. Their issuers and the claims they represent are not the same.
Rank #2
- Proven security at scale: Over 9 years and millions of cards issued with no known remote hacks, while military‑grade EAL6+ security keeps your private keys locked inside the chip. Your cryptocurrencies stay strongly protected from online attackers.
- Tap once to manage your entire crypto wallet across 90 blockchains - no USB cables or Bluetooth, no batteries, no setup. Access 14,100+ coins & tokens, DeFi, NFTs, and staking instantly from your phone
- Smart backup: Use your second Tangem Wallet as your Backup keys with end‑to‑end encryption; no more papers, pictures. If one card is lost, the remaining can still restore full access, with an optional seed phrase available for advanced users.
- Engineered to last up to 25 years: Waterproof (IP69K), shockproof and tested for extreme temperatures from −25°C to 50°C. A durable cold wallet with long‑term protection and independently audited security.
- Trusted by 6 million users worldwide (4.9 App Store, 4.8 Google Play) - buy, sell, swap, stake, and spend cryptocurrency directly. The secure offline storage wallet designed for how people actually use crypto wallets
| Form | Issuer and holder’s claim | Typical use or distinction |
|---|---|---|
| Retail CBDC | Central bank; a direct central-bank liability | Digital central-bank money intended for public use. |
| Wholesale CBDC | Central bank; a central-bank liability available to eligible financial intermediaries | Interbank transfers and wholesale settlement. |
| Commercial bank deposit | Commercial bank; a liability of that bank | Customers use it digitally through bank accounts, but their claim is against the bank rather than directly against the central bank. |
| E-money | Private e-money issuer; a private liability | A digital form of private-sector money, not central-bank money. |
| Stablecoin | Private issuer; backing and governance depend on the arrangement | Often designed to track another asset or currency. A peg does not make it a central-bank liability. |
| Fast payment system | A payment arrangement that can move private liabilities | Can make transfers fast, but speed alone does not turn the money being transferred into CBDC. |
The IMF distinguishes CBDC as public money from fast payment systems that speed transfers of private liabilities and from e-money, which is a private liability. These approaches can pursue similar goals, such as more efficient payments, without being the same kind of money. IMF, Central Bank Digital Currency: Progress and Further Considerations (10 October 2024)
CBDC does not automatically mean cryptocurrency or blockchain
CBDC describes the issuer and liability: it is central-bank money in digital form. Cryptocurrency is not part of that definition, and using a distributed ledger is a technology choice rather than a requirement. A CBDC may use different payment architectures; the label alone does not specify one.
Rank #3
- Proven security at scale: Over 9 years and millions of cards issued with no known remote hacks, while military‑grade EAL6+ security keeps your private keys locked inside the chip. Your cryptocurrencies stay strongly protected from online attackers.
- Tap once to manage your entire crypto wallet across 90 blockchains - no USB cables or Bluetooth, no batteries, no setup. Access 14,100+ coins & tokens, DeFi, NFTs, and staking instantly from your phone
- Smart backup: Use your second Tangem Wallet as your Backup keys with end‑to‑end encryption; no more papers, pictures. If one card is lost, the remaining can still restore full access, with an optional seed phrase available for advanced users.
- Engineered to last up to 25 years: Waterproof (IP69K), shockproof and tested for extreme temperatures from −25°C to 50°C. A durable cold wallet with long‑term protection and independently audited security.
- Trusted by 6 million users worldwide - buy, sell, swap, stake, and spend cryptocurrency directly. The secure offline storage wallet designed for how people actually use crypto wallets
Why central banks consider CBDCs
Possible objectives include making risk-free digital central-bank money available for everyday use, supporting access where private providers leave gaps, encouraging payment competition or innovation, and enabling features such as conditional settlement or automation in wholesale settings. The BIS and IMF describe these as potential rationales, not guaranteed results. Whether a CBDC improves access, cost, or efficiency depends on local needs and how the system is designed.
A CBDC is also only one possible response to payment-system needs. The IMF recommends assessing existing infrastructure, private-sector innovation, institutional capacity, and local priorities before deciding whether a new central-bank service is needed. IMF policy paper
Rank #4
- EAL5+ CERTIFIED SECURE ELEMENT + FINGERPRINT PROTECTION — Your private keys stay encrypted offline on a certified EAL5+ chip, the same security tier used in EMV bank cards. Built by DCENT, securing crypto since 2018. Fingerprint authentication adds a second layer no PIN-only wallet can match.
- 10,000+ ASSETS NATIVE ON 100+ BLOCKCHAINS — Hold Bitcoin, Ethereum, XRP, Solana, Cardano, popular stablecoins (USDT, USDC), and NFTs in one wallet. No third-party apps, no fragmented setup — every supported asset works straight out of the box.
- TAP-TO-SIGN MOBILE EXPERIENCE — Pair your wallet with the DCENT mobile app over Bluetooth. Manage tokens, review transactions, and access in-app swap features directly from your phone — no cables, no desktop required.
- WEB3 & dAPP ACCESS VIA METAMASK — Connect to MetaMask and other browser extension wallets to manage NFTs, claim airdrops, and access dApps. A large screen and intuitive 4-button interface keep every transaction clearly visible before you sign.
- SEAMLESS FIRMWARE UPDATES & 30-DAY MONEY-BACK GUARANTEE — Apply security updates without resetting your wallet or migrating funds. Backed by Amazon's 30-day money-back guarantee — your purchase is risk-free.
Key design tradeoffs
Privacy and data governance
Digital payments can create data traces. System architecture affects who records transaction-level information and who can access it, making data governance a central design question.
Banks and financial stability
If people move deposits into a retail CBDC, banks could lose funding used for lending. A rapid shift during a period of stress could intensify a bank run. Holding caps, remuneration policies, and robust data governance are among the possible mitigations discussed by the BIS; they are design options, not universal requirements.
Best Value
- Dual-chip architecture for maximum protection: The next-gen, fully auditable TROPIC01 chip works alongside a certified EAL6+ Secure Element—completely NDA-free—to deliver radically transparent, industry-leading defense against physical attacks.
- Quantum-ready security: Get protection against future threats with the first-ever hardware wallet designed with quantum-ready architecture.
- See every detail with confidence: Our largest high-resolution color touchscreen makes it easy to navigate your assets, review transactions and manage your coins with clarity.
- Wireless freedom with encrypted Bluetooth control: Manage, buy, swap and stake securely using Trezor Suite on desktop or mobile. Qi2-compatible wireless charging keeps your Trezor powered up. No cables required—security meets convenience.
- Works seamlessly with Android, iOS and desktop: Connect wirelessly or via USB-C to your phone or computer. Manage your crypto anywhere with our companion Trezor Suite app.
Public and private-sector responsibilities
In a one-tier model, the central bank handles customer onboarding and servicing. Two-tier or hybrid models involve private providers in customer-facing functions. These choices affect the central bank’s responsibilities, service continuity, privacy, and the role of private innovation.
Access and interoperability
A public-facing system must set rules for eligibility and identity, determine whether intermediaries are involved, and decide how access works. Cross-border use also requires coordination between jurisdictions and compatible arrangements.
Alternatives and local needs
Existing fast payment systems or improvements to e-money and other private payment services may address some payment problems. The relevant comparison is a proposed CBDC against the actual options available in that jurisdiction—not against an assumed universal alternative.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchPC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11CBDC status depends on the jurisdiction
CBDC design and issuance decisions vary by country and can change over time. A 2021 summary from the BIS and participating central banks said that none of the jurisdictions in that report’s group had decided to proceed with a general-purpose CBDC at the time. That dated finding applies to those participants and does not establish current global status or mean that no CBDCs exist. BIS and participating central banks, Central bank digital currencies: Executive Summary (2021)
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
