CBDC, or central bank digital currency, is a digital form of money issued by a central bank. The specific technology used for CBDCs can vary depending on the specific design and goals of the central bank issuing the currency.
One technology that has been used for CBDCs is blockchain, which is a decentralized, distributed ledger technology that allows for the secure and transparent recording of transactions. Blockchain technology has the potential to improve the efficiency and security of financial transactions, and several central banks have explored the use of blockchain-based CBDCs.
Another technology that has been used for CBDCs is distributed ledger technology (DLT), which is a type of database that is shared and replicated across a network of computers. DLT allows for the secure and transparent recording of transactions, and can be used to create digital currencies that are issued and backed by central banks.
Other technologies that have been used or explored for CBDCs include cryptography, smart contracts, and digital wallets. Central banks are also considering the use of other emerging technologies, such as quantum computing and artificial intelligence, in the development and operation of CBDCs.