Different types of CBDCs..There are two types of CBDCs.....
Categories: Crypto News
CBDCs are categorized into two different proposals based on the targeted users:
Categories: Crypto News
CBDCs are categorized into two different proposals based on the targeted users:
Retail Central Bank Digital Currency
Retail CBDC, based on distributed ledger technology, is traceable, anonymous, and available around the clock. It offers possibilities for interest rate applications, as well. Due to these advantages, a retail central bank digital currency focuses, in particular, on supporting the general public. Additionally, it helps lower the cost of cash printing and promotes financial inclusion.
Wholesale Central Bank Digital Currency
Wholesale CBDC increases payments and security settlement efficiency while resolving liquidity and counterparty risk issues. It’s a great fit for financial institutions which have reserves deposited in a central bank. With their capability to improve wholesale financial systems' speed and security, even central banks consider wholesale central bank digital currency a favored alternative to existing systems today.