A central bank digital currency (CBDC) is a digital form of a country’s sovereign currency issued and regulated by a central bank. Unlike cryptocurrencies, it is centralized and represents a direct liability of the issuing authority. CBDCs are designed to function as legal tender and can be used for payments, transfers, and settlement. They may operate on distributed ledger technology or other controlled digital systems. Central banks explore CBDCs to improve payment efficiency and financial inclusion.
European lawmakers endorsed the European Central Bank’s digital euro project, framing it as a strategic tool to strengthen monetary sovereignty and reduce reliance on foreign payment providers.
Debates at the World Economic Forum highlighted growing tensions between private-sector tokenization, Bitcoin-based monetary visions, and central bank control through CBDCs.
Chinese authorities accuse former digital yuan architect Yao Qian of accepting more than $8 million in cryptocurrency bribes, exposing governance risks at the intersection of blockchain and regulation.
South Korea’s Financial Services Commission plans to permit listed companies and professional investors to allocate up to 5% of equity to top cryptocurrencies, ending a nine-year prohibition.
A Coinbase executive warned that restricting interest on US-issued stablecoins could weaken US competitiveness as China prepares to allow interest on its digital yuan.