What are Retail CBDCs designed for?

Retail Central Bank Digital Currencies (CBDCs) are specifically designed to facilitate peer-to-peer transactions among the general public. This means that these digital currencies aim to provide a means for individuals and businesses to exchange funds directly with one another, enhancing the efficiency and speed of transactions in everyday commerce. Retail CBDCs can help users transfer money seamlessly without the need for intermediary institutions, promoting financial inclusion and potentially lowering transaction costs.

In contrast, options focused on large-scale institutional transactions, commercial bank reserves, and foreign exchange trading typically pertain to wholesale CBDCs or traditional financial systems, which are not the primary objective behind the design of retail CBDCs.