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- Example: The United States is exploring a retail CBDC model, and the Bahamas was among the first to launch one for public use.
2. Wholesale CBDCs
Targeted at financial institutions, wholesale CBDCs facilitate higher-value transactions such as interbank payments or cross-border settlements. They typically use sophisticated ledger technologies to prevent fraud and ensure secure, efficient transfers.
- Countries such as Singapore, Malaysia, and Saudi Arabia are pioneering development in this space. Wholesale CBDCs promise more advanced features for banking and international payment systems.
Distinguishing CBDCs from Cryptocurrencies
Although CBDCs drew inspiration from cryptocurrencies, they are fundamentally different in structure and purpose: