Glossary

Money that is a direct claim on the central bank: cash today, and a CBDC if issued.

Balances in your bank account. A claim on your bank, protected by deposit insurance up to a limit.

The central bank issues the CBDC and banks or payment firms distribute it to the public.

A cap on how much CBDC one person can hold, to protect bank deposits.

Paying device to device without an internet connection, with privacy close to cash.

Distributed ledger technology. A shared database, of which blockchain is one type. Not required for a CBDC.

Representing assets such as deposits, bonds or property as digital tokens on a ledger.

Negotiations between the European Parliament, Council and Commission to agree the final text of an EU law.

A privately issued digital token designed to hold a fixed value against a currency.

The risk that people move money out of banks into CBDC, reducing banks’ ability to lend.