Who Created CBDC?

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A computer monitor with colorful graphs on it showcasing CBDC.
Table of Contents
A computer monitor with colorful graphs on it showcasing CBDC.

Wondering who brought the world CBDCs, a cutting-edge technology in the realm of digital currency? The Central Bank Digital Currency (CBDC), is quite simply, virtual money created by central banks.

This blog will take you on an informative journey to uncover the origins and creators of CBDCs. Intrigued yet? Keep reading to elevate your understanding about this revolutionary financial innovation!

Who Created CBDC?

Central Bank Digital Currencies (CBDCs) are typically created and issued by the central banks of a country. The creation and issuance of CBDCs are the responsibility of these government-controlled financial authorities.

Central banks develop and manage the technical infrastructure, regulatory framework, and monetary policy related to CBDCs. The design and implementation of CBDCs are aimed at enhancing the efficiency and security of digital payments, reducing the reliance on physical cash, and ensuring the stability of a nation’s financial system.

While central banks take the lead in creating CBDCs, they often collaborate with various government agencies, financial institutions, and technology providers to bring these digital currencies to fruition.

Key Takeaways

  • CBDCs (Central Bank Digital Currencies) are created by central banks around the world.
  • Examples of countries that have already launched their own CBDCs include China, The Bahamas, and Ecuador.
  • CBDCs provide a secure and easily accessible form of digital currency issued by the central bank.
  • Central banks take a centralized approach to develop CBDCs, managing ledgers and ensuring compliance with regulations.

What is CBDC (Central Bank Digital Currency)?

CBDC, or Central Bank Digital Currency, is a form of digital currency issued and regulated by a country’s central bank, which operates alongside the traditional fiat currency. It differs from cryptocurrencies and stablecoins in that it is backed by the issuing country’s central bank and follows regulatory guidelines.

Definition and explanation of CBDC

A CBDC, or Central Bank Digital Currency, is a kind of digital money. But it’s not just any digital money. It’s made by central banks. For example, the first big economy to make one was China with its digital RMB.

That means it has real value that’s tied to an actual currency from the country that makes it. This sets it apart from other forms of virtual cash like cryptocurrencies and stablecoins which are not linked directly to a government or bank.

So you can think of a CBDC as special type of digital dollars, euros, yens – whatever the official currency is in the country where it comes from!

Comparison to cryptocurrencies and stablecoins

CBDCs, cryptocurrencies, and stablecoins each have unique characteristics, which are distinguished by their design, utility, regulation, and risk factors. Let’s observe these differences in the table below.

Type of CurrencyDefinitionIssuerRegulationRisk Factors
CBDC (Central Bank Digital Currency)A digital currency issued by central banks. The value of CBDC is linked to the official currency of the issuing country.Central BanksRegulated by the central bank of the issuing country.Generally considered safe due to the backing and regulation by the central bank.
CryptocurrenciesDigital or virtual currencies that use cryptography for security and operate independently of a central bank.Private entities. For example, Bitcoin was created by an unknown person using the name Satoshi Nakamoto.Mostly unregulated, but some countries have implemented specific regulations.Potential for high volatility, possible lack of regulatory oversight, and the risk of hacking.
StablecoinsA type of cryptocurrency designed to minimize the volatility of the price of the stablecoin, relative to some “stable” asset or basket of assets.Private companies. For example, Tether (USDT) is issued by Tether Ltd.Regulation varies by jurisdiction and type of stablecoin.Depends on the stability of the reserve assets and the regulatory oversight of the issuing company.

History of CBDCs by Country

Countries around the world have been exploring and implementing CBDCs, with early examples including Ecuador’s pilot program.

Examples of early CBDCs, such as Ecuador’s pilot program

Ecuador’s pilot program is one example of an early CBDC. Here are some other examples:

  • The Central Bank of Tunisia conducted a trial in 2015 to test the feasibility of a digital version of their national currency.
  • Senegal launched its eCFA, a digital version of the West African CFA franc, in December 2016.
  • The Eastern Caribbean Central Bank introduced the DCash as a digital representation of the Eastern Caribbean dollar in March 2021.

Current development and adoption of CBDCs worldwide

Several countries have been actively developing and adopting CBDCs (Central Bank Digital Currencies) in recent years. China has taken the lead by issuing its digital currency, the digital RMB.

Other countries, such as The Bahamas and several other central banks, have also launched their CBDCs. These digital currencies are being created to provide a new form of central bank money that is accessible to the public.

They are seen as alternatives to cryptocurrencies and stablecoins. Various organizations like the World Economic Forum (WEF) are closely monitoring these developments in CBDCs worldwide.

Different Approaches to CBDC Development

Different approaches to CBDC development include a centralized approach where the ledgers are managed by central banks and considerations for design and compliance with regulations.

Centralized approach with ledgers managed by central banks

Central banks are taking a centralized approach to the development of CBDCs. In this approach, the central bank is responsible for managing the ledgers that keep track of CBDC transactions.

This means that all transactions made using CBDCs are recorded and verified by the central bank. This centralized approach allows for better regulation and compliance with financial rules and regulations.

It also ensures that the central bank has control over the issuance of CBDCs, which helps maintain stability in the financial system. With this approach, central banks can closely monitor and manage the money supply and implement monetary policy effectively.

Design considerations and compliance with regulations

When developing CBDCs, there are several important design considerations and compliance rules that need to be followed. Central banks must ensure that the digital currency is secure, reliable, and able to handle a large volume of transactions.

They also need to consider how the CBDC will integrate with existing financial systems and infrastructure.

Compliance with regulations is another crucial factor. Central banks must adhere to financial regulations and anti-money laundering laws when designing and implementing CBDCs. They need to establish know-your-customer (KYC) procedures to verify the identity of users and prevent illegal activities.

Additionally, central banks must consider privacy concerns when designing CBDCs. They should implement strong data protection measures to safeguard personal information while still enabling efficient transactions.


Central bank digital currencies (CBDCs) are created by central banks around the world. Countries like China, The Bahamas, and Ecuador have already launched their own CBDCs. These digital currencies are seen as a new way for central banks to provide secure and easily accessible money to the public.

As CBDCs continue to develop and gain popularity, it will be interesting to see how they shape the future of digital currency.


What is CBDC and who created it?

CBDC, or Central Bank Digital Currency, is a type of virtual currency made by central banks to use in electronic payments.

How does the creation of a CBDC happen?

The centralised approach for the making of a CBDC uses financial technology, known as blockchain.

When did they launch the first retail CBDC?

The launch date differs since various countries have created their own version of retail CBDC at different times.

Why do central banks create digital currencies like CBDC?

Central Banks make digital currencies like CBCD to push forward with digital innovation and improve currency issuance methods.



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About the Author:
Alex Sterling stands at the forefront of blockchain innovation, offering a technical perspective rooted in a Computer Science background. Specializing in decentralized systems, Alex's articles dissect blockchain technologies and crypto market trends, making intricate details comprehensible for readers. They are deeply involved in blockchain project development, frequently sharing their technical expertise at tech conferences. Alex's work aims to educate and inspire readers about the transformative potential of blockchain and cryptocurrency.