---
title: "CBDC (Central Bank Digital Currency)"
url: "https://www.unknowngravity.com/en/glosario/cbdc"
site: Unknown Gravity
published: "2026-08-13T06:40:02+00:00"
modified: "2026-08-13T06:40:02+00:00"
language: en-US
description: "A CBDC (Central Bank Digital Currency) is digital money issued directly by a central bank: a central-bank liability in electronic form, unlike stablecoins (private issuer) and bank money (a…"
section: "Home > CBDC (Central Bank Digital Currency)"
---

# CBDC (Central Bank Digital Currency)

GLOSSARY · BLOCKCHAIN & WEB3

What a CBDC is, how it differs from a stablecoin and from a bank deposit, and where the ECB digital euro stands.

WHAT IS IT? · FOR DUMMIES

A **CBDC** is like cash, but digital and issued by a countrys central bank. If the digital euro ever launches, holding digital euros will be like having banknotes on your phone: money from the European Central Bank, not from a private bank or a company. It differs from cryptocurrencies in that it is not decentralised: the central bank controls it.

WHAT IS IT? · PRO

A **CBDC (Central Bank Digital Currency)** is a **central-bank liability in digital form**, accessible to households and firms (retail CBDC) or only to financial institutions (wholesale CBDC). Unlike a [stablecoin](/en/glosario/stablecoin) — issued by a private entity against reserves — and unlike bank money — a commercial bank liability — a CBDC is central bank money: the same issuer as banknotes, with no private-issuer risk.

In the euro area, the ECBs **digital euro** is in its **preparation phase**: regulation in progress, provider testing and holding-limit design, **with no issuance decision taken**. Other central banks are further along in pilots (Chinas e-CNY is the largest) and several are exploring the **wholesale** route to settle interbank operations and tokenized securities in central bank money.

For tokenized asset markets, wholesale CBDC is the piece that would enable definitive **delivery-versus-payment settlement** in central bank money; until it arrives, that role is covered by MiCA-regulated **e-money tokens (EMTs)**, as we explain in our guide to the [euro stablecoin](/en/articulos/euro-stablecoin-mica).

## 01 / Key points

- Digital money issued by the central bank: the same issuer as banknotes
- Can be retail (for the public) or wholesale (financial institutions only)
- Not a cryptocurrency or a stablecoin: no private issuer, no decentralisation
- The ECB digital euro is in preparation phase, with no issuance decision

## 02 / Advantages

- **No private-issuer risk**: a direct central-bank liability
- **Settlement finality** in central bank money, ideal for tokenized markets
- **Public digital payments** without depending on private networks

## 03 / Disadvantages

- **Privacy**: the design decides how much the issuer sees of each payment
- **Bank disintermediation risk** if it replaces deposits, hence holding limits
- **Uncertain timeline**: most projects remain in study or pilot phase

This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version on [BOE](https://www.boe.es) and [EUR-Lex](https://eur-lex.europa.eu).