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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" like a debit 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 country's central bank to operate. This is contrary to the decentralized nature of blockchains.

CBDCs Are in Various Stages
As of 2022, more than a hundred countries are reviewing the pros and cons of a CBDC, including the U.S. (see Project Hamilton). Several Caribbean countries have already launched a CBDC. China, Japan, Sweden and Russia are in trial stages. See blockchain, cryptocurrency and digital dollar.