What is a CBDC? Central bank digital currency explained
Government-issued digital cash: how a CBDC currency differs from crypto and stablecoins, which countries have one, and why the US has said no for now.
A CBDC (central bank digital currency) is a digital form of a country's own money, issued directly by its central bank, such as China's e-CNY or the proposed digital euro. One unit is always worth one unit of the national currency, and the central bank controls it, unlike Bitcoin. As of November 2026 the United States has no CBDC: a January 2025 executive order bars federal agencies from creating one, and a July 2026 law bars the Federal Reserve from issuing one until December 31, 2030.
What a CBDC currency is
Most money you use is already digital: a bank balance is a number in your bank's computer, and it's a promise from that commercial bank, not from the government. Cash is the only form of money most people hold that is a direct claim on the central bank. A CBDC would be a digital version of that cash: a direct claim on the central bank, held in an app or card.
- Retail CBDC: for the public, to pay in shops and send to friends. This is what "CBDC" usually means in the news.
- Wholesale CBDC: only for banks and financial firms, to settle large payments between themselves. Ordinary people never see it.
A CBDC can run on a blockchain-like ledger or on a conventional database. Either way, the central bank decides who can use it, how much they can hold and what the rules are.
CBDC vs. stablecoins vs. crypto
| Compare | CBDC | Stablecoin (e.g. USDC) | Bitcoin |
|---|---|---|---|
| Issued by | A central bank | A private company | No one; created by the network |
| Whose debt is it? | The central bank's | The issuing company's, backed by its reserves | No one's; it's a bearer asset |
| Value | Always one unit of the national currency | Designed to stay at $1, but can slip if reserves are doubted | Set by the market; swings a lot |
| Who controls it | The government | The issuer, under regulation | Network rules nobody controls alone |
| Can payments be frozen? | Yes, by design if the rules allow | Yes: issuers can freeze tokens | No central party can freeze coins on the network |
So a CBDC isn't a cryptocurrency in the usual sense, even when it uses similar technology. It has none of crypto's price risk, but it also has none of its independence from the state. Read more in what is a stablecoin and digital vs. virtual currency.
Examples around the world
| Country | CBDC | Status (November 2026) |
|---|---|---|
| China | e-CNY (digital yuan) | The largest by far: 3.48 billion transactions worth 16.7 trillion yuan by the end of November 2025, according to the People's Bank of China. Since January 1, 2026, banks can pay interest on verified e-CNY wallets, which are covered by deposit insurance, making it work more like a digital bank deposit than digital cash. |
| The Bahamas | Sand Dollar | Launched nationwide in October 2020, the first retail CBDC; use remains small. |
| Nigeria | eNaira | Launched in October 2021. Adoption stayed low, and the Central Bank of Nigeria's June 2026 payments roadmap acknowledged this and set out a new approach. |
| Jamaica | JAM-DEX | Launched in 2022, with limited use. |
| Euro area | Digital euro | Not issued. The ECB's preparation phase ran from November 2023 to October 2025; it then moved to a next phase aimed at a possible pilot in 2027 and first issuance in 2029, if EU lawmakers adopt the digital euro law. The European Parliament adopted its negotiating position in July 2026, and talks with EU governments on the final text began that month. |
The Atlantic Council's CBDC tracker counts well over 100 countries and currency unions that are researching, testing or running a CBDC.
The US position
- Executive Order 14178 (January 23, 2025) prohibits federal agencies from taking any action to establish, issue or promote a CBDC in the US or abroad, unless the law requires it, and ordered existing CBDC plans ended.
- The 21st Century ROAD to Housing Act, which became law in July 2026 without the President's signature, includes a provision barring the Federal Reserve from issuing a CBDC until December 31, 2030.
- The Anti-CBDC Surveillance State Act (H.R. 1919), a permanent ban, passed the House 219–210 on July 17, 2025. Its Senate companion had not passed the Senate as of our last check.
- Instead of a CBDC, the US chose to regulate private dollar stablecoins, through the GENIUS Act of 2025.
The arguments for and against
Supporters say a CBDC could make payments faster and cheaper, give people without bank accounts a safe digital option, and keep public money relevant as cash use falls. Critics worry about privacy and government surveillance of payments, the power to freeze or limit spending, and people pulling deposits out of banks in a crisis. Most designs try to answer these with holding limits and privacy rules, but the debate is far from settled.
Frequently asked questions
What is a CBDC currency?
"CBDC" already includes the word currency: it's a central bank digital currency, a digital form of a country's national money issued by its central bank.
Is a CBDC a cryptocurrency?
Not in the usual sense. It may use similar technology, but it's issued and controlled by a central bank rather than a decentralized network, and its value is fixed to the national currency.
Is a CBDC the same as a stablecoin?
No. Both aim at a stable value, but a stablecoin is issued by a private company and backed by its reserves, while a CBDC is a direct claim on the central bank.
Does the US have a digital dollar?
No. As of November 2026 there is no US CBDC. A 2025 executive order bars federal agencies from pursuing one, and a July 2026 law bars the Federal Reserve from issuing one until December 31, 2030.
Which countries have a CBDC?
A few have launched retail CBDCs, including the Bahamas (Sand Dollar), Nigeria (eNaira) and Jamaica (JAM-DEX). China's e-CNY is the biggest, and the euro area is preparing a digital euro.
Is the money in my bank account a CBDC?
No. Bank balances are digital, but they're money owed to you by a commercial bank, not by the central bank.
Where to next
Sources
- Executive Order 14178 (Federal Register, January 2025)
- H.R.1919, Anti-CBDC Surveillance State Act (Congress.gov)
- Housing bill with CBDC ban passed into law (The Block, July 2026)
- Congress passes Fed CBDC ban through 2030 (The Defiant, June 2026)
- Eurosystem moves to next phase of the digital euro project (ECB, October 30, 2025)
- Digital euro heads to the last stage of negotiations (Freshfields, July 2026)
- China to let banks pay interest on digital yuan (The Block)
- Nigeria's eNaira changes course (Financial Afrik, June 2026)
- CBDC tracker (Atlantic Council)
Written for beginners and checked against the sources listed. Last reviewed November 4, 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.