A Central Bank Digital Currency (CBDC) is a digital form of money issued and regulated by a country's central bank. Unlike cryptocurrencies such as Bitcoin, CBDCs are backed by the government and represent a digital version of the nation’s official currency. CBDCs aim to provide a secure, efficient, and accessible means of payment for individuals and businesses, often leveraging blockchain or similar technologies for enhanced security and transparency. They can help streamline payment systems, reduce transaction costs, and promote financial inclusion. CBDCs differ from traditional bank deposits as they are a direct liability of the central bank, not commercial banks. Many countries are exploring or piloting CBDCs to modernize their financial systems and respond to the growing digital economy.