What is CBDC?

CBDC is a new form of electronic money that is directly issued by a central bank.

 

What are the different types of CBDC?

Wholesale CBDC and General Purposes CBDC.

 

What is the difference between Stablecoin, CBDC, Cryptocurrency?

Cryptocurrency: Digital assets for medium of exchange whose ownership is recorded in distributed ledger (Blockchain).

Stablecoin: Cryptocurrency whose value refers to external assets.

CBDC: Digital money that directly issued by a central bank.

 

Why can’t we just focus on mobile money, is it same as CBDC?

CBDC facilitates lower transaction fee, cross-border payments, and efficient monitoring tool that can help the central bank to improve their monetary policy (such as financial inclusion, reduce financial crimes, privacy issues).

 

Can CBDC be used offline?

Yes, some of the approaches used are by setting time limit or size limit. Devices used must also be included as consideration.

 

What countries are leading the CBDC race?

China and Sweden are in the pilot project stage. Singapore has completed the research stage.

 

Why the sudden interest this year?

The surge of private cryptocurrencies makes central banks feel the need to innovate to provide safer alternatives to ensure financial system stability.

 

Does a CBDC need a Blockchain?

No. The approach should be technologically agnostic, but if designed properly, and the infrastructure supports it, the use of blockchain can provide many benefits.

 

Does (general purposes) CBDC create any problems?

A potential risk is bank runs and privacy concern.

 

Do we need CBDC?

It depends on the problem that need to be solved and whether it can be solved or not by existing system.