What does CBCC mean in BANKING

A Central Bank Crypto Currency (CBCC) is a digital currency that is issued and created by a central bank. It functions similarly to traditional fiat currencies but with greater capabilities and transparency.

CBCCs are different from other forms of money such as coins, paper money, or credit cards because they are digital currencies, meaning they exist solely in an online environment where transaction records are stored in an immutable blockchain ledger. This provides heightened security and fraud prevention capabilities compared to traditional payment methods.

CBCCs can provide users with several advantages including faster transaction times with lower fees, increased liquidity, improved privacy protection, and greater security due to the immutability of the blockchain ledger where transactions are recorded.

One potential downside to using CBBCs is that there may be limited access if its usage becomes more widespread due to competition from other payment providers such as banks or retail service providers. Additionally, since these currencies are not yet widely adopted it may be difficult to convert them into fiat currency when necessary.

The issuing central bank will typically regulate the activities associated with its own crypto currency as well as ensure that all activity complies with existing laws and regulations related to anti-money laundering and counter-terrorism financing measures.