• A CBDC is a digital type of central bank money that is widely used by the public.
• The term 'central bank money' refers to money that is the central bank's liability. Physical currency produced by the Federal Reserve and digital balances held by commercial banks at the Federal Reserve are the two types of central bank money now in use in the United States.
• A CBDC is a digital version of a country's legal money, issued by the central bank. It is a digital token or electronic record of a country's official money issued by the monetary authority.

Read More: What happens if we go to digital currency?