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Standard Explanation
A Central Bank Digital Currency (CBDC) is a digital form of a sovereign currency issued and controlled directly by the central bank. It is a liability of the central bank (like physical cash), not of a commercial bank or a private issuer. Unlike or , a CBDC runs on a permissioned ledger the central bank controls, and its supply and rules are set by policy, not by protocol code. Most CBDC designs preserve two-tier distribution: the central bank issues to commercial banks, which handle the consumer-facing wallet and onboarding.