Question 1

A retail CBDC is most accurately described as:

Accepted Answer

A digital liability of the central bank held by the public. Retail CBDCs are direct digital liabilities of the central bank - functionally analogous to physical cash, but digital.

Question 2

In a two-tier CBDC model, who typically distributes the currency?

Accepted Answer

Commercial banks and licensed PSPs. Two-tier models keep the central bank as issuer while commercial banks and PSPs handle KYC, wallets, and distribution.

Question 3

Which jurisdiction operates the largest retail CBDC pilot today?

Accepted Answer

China (e-CNY). China's e-CNY has the broadest retail pilot, covering hundreds of millions of users across major cities.

CBDCs Explained

A retail CBDC is most accurately described as:

In a two-tier CBDC model, who typically distributes the currency?

Which jurisdiction operates the largest retail CBDC pilot today?