What is a central bank digital currency?
The day cash becomes data.
Central banks that have issued paper notes are now weighing digital money. Some countries already use it; others are still preparing.
In 30 seconds
- A central bank digital currency is digital money issued by a central bank, for the public (retail) or between banks (wholesale).
- In a Bank for International Settlements survey, 91% of the 93 central banks that responded were exploring one.
- The Bahamas began distributing one in 2020 and Jamaica in 2022. The euro area aims for a first issuance during 2029, if legislation is adopted.
The digital form of a banknote.
Digital money, issued by a central bank.
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Two kinds
The Bank for International Settlements (BIS) survey asks about central bank digital currencies in two kinds: retail, for use by the public, and wholesale, for settlement between banks.[1]
Unlike crypto-assets, they are issued by the central bank.
91% are considering it.
Many central banks are exploring a digital currency.
Share of central banks exploring a digital currency (BIS 2024 survey, 93 banks)
Retail, wholesale, or both.
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The survey results
In the 2024 survey published by the BIS in August 2025, 91% (85) of the 93 central banks surveyed were exploring a retail CBDC, a wholesale CBDC or both.[1]
Countries where it is already in use.
The Bahamas and Jamaica have already begun distributing one.
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The Bahamas
The Central Bank of The Bahamas began releasing a digital Bahamian dollar (the Sand Dollar) nationwide, gradually, from 20 October 2020.[2]
Jamaica
The Bank of Jamaica began rolling out JAM-DEX, the digital form of Jamaica’s currency issued by the central bank, in 2022, and set out amendments to make it legal tender.[3]
The euro’s next step.
The euro area aims for a first issuance during 2029, if legislation is adopted.
Target year for a first issuance of the digital euro
If legislation is adopted in 2026. The final decision to issue comes after the law is adopted.
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The timetable
In October 2025 the European Central Bank (ECB) announced that, if EU legislation is adopted during 2026, a pilot could begin from mid-2027 and it would be ready for a first issuance during 2029.[4]
It says the final decision on whether, and when, to issue will be taken only once the legislation has been adopted.[4]
A scale for reading money as data.
A scale for reading digital currencies.
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Who issues it
Whether it is issued by a central bank or by someone else.[1]
Who uses it
Retail or wholesale.[1]
How far along
Exploring, piloting, issuing: which stage it has reached.[2][3][4]
This is not advice
This edition explains how central bank digital currencies work. It does not recommend any currency or service.
Next question
NEXT QUESTIONAn asset on the screen, issued by no country.NEXT QUESTIONThe deepest tap in money.See the Field Notes shelf →What this edition cannot tell you
- Progress on digital currencies in every country. Check each central bank’s website.
- A detailed technical explanation of digital currencies.