A CBDC, or Central Bank Digital Currency, is essentially the digital version of a country's national currency issued directly by its central bank. Unlike #cryptocurrency like [[Bitcoin]], which are decentralized and operate independently of central authorities, a CBDC is a centralized form of digital money that is backed and regulated by the government. It's like having physical cash, but in a digital format that can be used for transactions electronically. Many countries are exploring the potential benefits of CBDCs, such as increased financial inclusion, reduced transaction costs, and improved efficiency in monetary policy implementation. However, there are also concerns about privacy, security, and the potential impact on the existing financial system.