CBDC
A central bank-issued digital currency designed to function as legal tender.
What is CBDC?
A Central Bank Digital Currency (CBDC) is a digital asset issued and backed by a central bank, functioning as a digital form of a country’s fiat currency (e.g., digital USD or EUR). Unlike decentralized stablecoins, CBDCs are fully controlled by central authorities, ensuring stability and regulatory oversight. They aim to enhance payment efficiency, financial inclusion, and monetary policy implementation. Examples include China’s e-CNY, with over 180 million wallets by mid-2024, and pilot projects in countries like the Bahamas and Nigeria.
Related Terms
Swap Gas Fee
The swap gas fee is the cost paid in a blockchain’s native token (e.g., ETH on Ethereum) to process a token swap transaction on a decentralized exchange (DEX), covering computational resources used by network validators.
DAO
A blockchain-based organization governed by smart contracts and member voting, eliminating centralized control.
Cryptocurrency
Digital currencies and assets secured by cryptography and operating on decentralized blockchain networks without central authority.
Alpha
An advantage in digital asset trading gained through early or exclusive access to information, strategies, or opportunities not yet widely known by market participants.
Futarchy (Prediction Market)
A governance system using prediction markets to decide policies based on their predicted impact on a predefined metric.
Funding Rate
A periodic fee exchanged between long and short traders to balance market positions.