In the fourth instalment of this seven part series on the future of money, the authors examine the increasingly popular central bank digital currency (CBDC) systems as an alternative to the contemporary fiat system. The article explains CBDC in detail, and distinguishes it from the traditional fiat system. It also explains the token based and account based design formats for CBDC, while highlighting the policy considerations for regulators choosing a centralised or decentralized technological infrastructure for the distribution of CBDC.
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