Central Bank Digital Currencies (CBDCs) refer to the digital form of a country’s fiat currency. Instead of minting paper money, the central bank will mint electronic coins that are digital representative of the chosen currency.

CBDCs can also be blockchain-based, which will give the additional benefits from DLT systems such as improved traceability, immutability and finality of the transactions.

CBDCs have been gaining a lot of traction recently, with many countries in the process of implementing their own CBDC.

Examples include:

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