In an earlier article, we reported on the myths and fallacies that surround central bank digital currencies (CBDCs). Technological breakthroughs in exciting new fields are usually accompanied by misconceptions. Some of those misassumptions have fallen by the wayside, while others still persist.
In the intervening time, CBDCs have continued to evolve and add new use cases. Central banks around the world are moving from research to the pilot stage, and have a common understanding of key design criteria. With that in mind, let’s run through a quick refresher on what CBDCs are, and what they’re designed to do.