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Definition: CBDC


(Central Bank Digital Currency) Electronic money that is issued and regulated by a government. A CBDC enables people to pay in "digital cash" rather than carry cash or use a credit card. If a blockchain architecture is adopted, the CBDC is a "permissioned blockchain network," which means that network participants must be granted permission from the central bank to operate. This is contrary to the decentralized nature of blockchains in general. As of 2021, more than 80 countries are reviewing the pros and cons of a CBDC, and China, Japan and Sweden have rolled out trials. See blockchain, cryptocurrency and digital dollar.