CBDC is a new type of currency that central banks of many countries are experimenting with. This can be a digital form of current fiat currency in Blockchain. This is different from cryptocurrency because it is controlled by the central government.

It will be a stable coin whose value will be linked to national currency of the issuing Country / issuing Central Bank. It can be either Wholesale CBDC that is exchanged and traded only between Central Banks and Private Banks or Retail CBDC that is meant for ordinary consumers and citizens; people who will use it for their daily purchases or activities.

CBDCs are being promoted with the intent to accomplish Financial Inclusion, Combat Crime, Prevent Illicit activities andReduce the cost of distributing money in economy. China, Cambodia, Sweden, The Bahamas and Switzerland are actively piloting and testing CBDCs.