Wholesale CBDC

The sett­le­ment of inter­bank trans­fers and rela­ted tran­sac­tions between commer­cial banks in central bank reser­ves. Central Bank Digi­tal Curren­cies (CBDC) are digi­tal curren­cies issued by central banks as a digi­tal alter­na­tive or supple­ment to fiat money. Whole­sale CBDC enables finan­cial insti­tu­ti­ons to make payments and tran­sac­tions between them­sel­ves using the central bank digi­tal currency, even across borders, without having to take the detour via fiat money. This crea­tes conve­ni­ence, speed, cost savings and shor­tens proces­ses. Retail CBDCs (rCBDCs) for private custo­mers are also being conside­red. Central bank money has alre­ady been available in digi­tal form for whole­sale tran­sac­tions between banks for decades.