A Central Bank Digital Currency (CBDC) is a digital form of a country's fiat currency issued and regulated by its central bank. Unlike cryptocurrencies, CBDCs are centralized and backed by the full faith and credit of the issuing government. Several countries including China, the Bahamas, and Nigeria have already launched CBDC pilots, and the technology is expected to reshape global payments and monetary policy in the coming years.
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“China's digital yuan CBDC pilot expanded to several new provinces, intensifying the global race among central banks to develop digital currencies.”