CBDC (Central Bank Digital Currency) is a digital currency issued by the central bank. It will be a commitment of the Fed. In essence, this means risk-free CBDC. In addition, the Federal Reserve will not pay interest on the money stored in it.
Pros and cons - two sides of the coin.
The advantages of the new digital currency are the acceleration of the electronic payment system and the reduction of the cost of financial transactions, especially remittances abroad.
The most notable advantage of CBDC is the speed of the Fed-controlled system to quickly obtain incentive payments to people and provide financial services to people who do not have access to banking services.
