A wholesale Central Bank Digital Currency (CBDC) is like a special kind of digital money that big companies and banks use to send and receive payments quickly, just like how you might use a piggy bank to save your allowance.
How it works
Imagine the Central Bank as the "bank of all banks." It's like the head teacher who keeps track of everyone’s money in school. A wholesale CBDC is like giving that head teacher a super-fast calculator so they can help big businesses and banks move money between each other instantly, without waiting for the school day to end.
Why it matters
Without this special digital money, sending money from one bank to another might take time, kind of like when you have to wait in line at the cafeteria. But with wholesale CBDC, it's like having a teleporter between piggy banks, the money arrives almost instantly!
This helps make everything faster and more efficient, just like how your favorite game gets better when you unlock new levels.
Examples
- Big banks trade with digital coins instead of paper money.
- It's like a faster way for banks to do business.
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See also
- CBDC Explained: Can Your Money Really Expire?
- How Does The Dark Side Of CBDC Explained Work?
- Why the CBDC is bad? (Explained with Animations)?
- What is Central bank digital currencies (CBDCs)?
- Who is Wholesale CBDCs?