Retail CBDC
A retail CBDC is digital central bank money designed for everyday use by the public, similar to digital cash.
A retail CBDC, or retail central bank digital currency, is a digital form of a country’s official money made available to individuals, households, and businesses for everyday payments. Unlike bank deposits or payment app balances, which are claims on private institutions, a retail CBDC would be a direct liability of the central bank. It is often described as a digital version of cash, although its design could vary widely, including whether it works through mobile wallets, banks, payment providers, or offline devices.
Retail CBDCs matter because they could change how people access and use public money in an increasingly digital economy. Governments and central banks study them for goals such as faster payments, broader financial access, lower settlement risk, and maintaining a public payment option as cash use declines. For example, paying a shop with a retail CBDC might feel similar to using a debit card or mobile wallet, but the underlying money would be central bank-issued rather than commercial bank money.
Other terms in CBDCs
CBDC
A central bank digital currency is digital money issued by a country’s central bank and designed to function as official legal tender.
Digital Euro
A digital euro is a proposed central bank digital currency that would let people and businesses use euro-area central bank money electronically.
Digital Yuan
China’s central bank digital currency, a digital form of the yuan issued by the People’s Bank of China for everyday payments.
Wholesale CBDC
A wholesale CBDC is central bank digital money designed for use by banks and other financial institutions, not the general public.