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Banknote dissolving into a grid of illuminated digital squares, illustrating central bank digital currency

Central Bank Digital Currency Explained: What CBDCs Mean in 2026

A Central Bank Digital Currency (CBDC) is a digital version of a country’s official currency issued and backed by the central bank. Unlike money in a commercial bank account, a CBDC is a direct claim on the central bank, similar to cash. It has a stable value and is not a cryptocurrency or an investment.

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