Who issues Central Bank Digital Currencies (CBDCs)?

Central Bank Digital Currencies (CBDCs) are issued by central banks, which are the national financial institutions responsible for managing a country's currency, money supply, and interest rates. The mandate of central banks includes maintaining monetary stability and ensuring secure and efficient payment systems within their jurisdictions. CBDCs are digital forms of a country's fiat currency, designed to complement or replace physical cash, enhance the payment infrastructure, and promote financial inclusion.

By issuing CBDCs, central banks can leverage technology to provide a government-backed digital currency that encompasses the same trust and stability inherent in traditional fiat currencies. This allows for greater control over monetary policy, better tracking of transactions for regulatory purposes, and improved efficiency in the payment systems. Essentially, CBDCs aim to modernize and secure the currency in a digital economy while retaining the central bank's crucial role in the financial system.