Central Bank Digital Currencies (CBDC) are divided into two different categories:

  • Wholesale
  • Retail

What is Wholesale CBDC?

A wholesale CBDC is for financial institutions that hold reserve deposits with a central bank. It could be used to improve payments and securities settlement efficiency, as well as to reduce counterparty credit and liquidity risks.

A value-based wholesale CBDC would replace or complement reserves at the central bank with a restricted-access digital token. A token would be a bearer asset, meaning that during the transaction the sender would transfer value to the…

Neeta Gupta

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