Spotlight On Stablecoins & CBDCs: Part 3

Examining the implications of central bank digital currencies worldwide

This is the third installment in a series exploring stablecoins and central bank digital currencies. Previously, we discussed fundamental similarities and differences between these two novel financial instruments, followed by a spotlight on stablecoins. In this article, we focus on the implications of central bank digital currencies (CBDCs) and their worldwide status.

Snapshot of what it is

Every advancement in the history of money and payments borrows and retains concepts of its predecessor paradigm. In a reductive way, CBDCs are "simply" (fiat) money in digital form.

CBDCs around the world are:

• digital money backed and issued by a central bank; the digital format of a fiat currency for a particular nation or region;