How Does a CBDC Differ from Commercial Bank Money?

Commercial bank money is a liability of private commercial banks, created through lending, and is subject to bank-specific risk (e.g. bank runs). A CBDC is a direct liability of the central bank, carrying no credit or liquidity risk, making it the safest form of digital money.

Commercial bank money is typically used for most transactions, while a CBDC would be a central bank-issued digital cash equivalent.