Central bank digital currency (CBDC) pending

CBDC is a cryptographic form of currency. It is one type of stablecoin, issued by the central bank and backed by full reserve fiat money. From money theory's perspective, money has three key internal factors: money form, money issuance, money flow(money movement). CBDC inherited the advantages of blockchain and blockchain in the meantime keep the power of money issuance unchanged. In this way, central banks have the incentive to adopt the cryptographic form of money and blockchain technology. But blockchain is not a must for CBDC. CBDC uses the blockchain-based network for money movement besides traditional financial networks. For blockchain-based network, the payment fee is lower and instantaneous. The remittance cost is low as well.

What's the difference between CBDC and traditional money?

(1) Money form. CBDC is cryptographic, the password may not be saved in the central servers. Traditional money can be paper money, electric money. But electric money is simply a certificate of your fiat money. all the account info and transaction data are in centralized financial "trusted third parties" like banks, payment service provider as Paypal and Alipay, settlement gateway like Stripe. CBDC also introduced the problem of password changing, privacy and consistent with privacy regulation, etc.

(2) CBDC typically uses the blockchain-based network for money flow. It is a new network, independent of traditional financial networks. CBDC needs to combine these two networks. CBDC needs to guarantee its service and regulations are consistent with traditional money forms for commercial banks.

List of CDBC