CBDC stands for Central Bank Digital Currency. It is a digital form of a country’s official currency that is issued and regulated by the country’s central bank. CBDCs are designed to be a digital representation of physical cash, offering a secure and government-backed means of electronic payments. They are distinct from cryptocurrencies like Bitcoin, as CBDCs are typically centralized, regulated, and often intended to work alongside traditional fiat currencies. CBDCs are being explored and developed by many central banks around the world as a potential future evolution of the monetary system.

Good Digital currencies are developed on blockchain although there are other methods too. However, those economies that wish to remain transparent and comfortable on cross border transactions prefer to deploy CBDC on blockchain