What is a Central Bank
Is legal tender with supply controlled by the Central Bank.
Existing financial service providers continue to play a key role as CBDC intermediaries.
Nationally accepted as a form of payment.
Can be interest-bearing and serve as collateral.
Familiar and easy to use with a 1:1 peg to traditional currency.
Improvements to Cash
Central Bank Digital Currencies remove the need for a central bank to rely on intermediaries like clearing houses, ensuring payment efficiency and decreased transaction costs.
CBDC unlocks a new channel for monetary policy transmission (ie. helicopter money), in addition to indirect tools to control money supply such as quantitative easing, interest rates, and more.
CBDC balances are stored on a shared ledger making them a safe store of value independent of provider or device.
An open API standard facilitates the rapid development of and competition between innovative financial services.