CBDC stands for Central Bank Digital Currency, a type of currency usually structured as e-money issued by central banks where the managed digital ledger may or may not run on blockchain.

CBDCs are, in most cases, testing the ability to provide many of the advantages of crypto, such as faster digital transactions with richer data, but also offer much lower value volatility since they are digital versions of national currencies backed by government commitment. As digital assets are programmable money, the privacy concerns of a Central Bank having access to significantly more citizen behaviour data is still an important, ongoing discussion.