A Central Bank Digital Currency (CBDC) refers to a digital form of a country's national currency that is issued and regulated by the central bank. Unlike traditional physical currencies, CBDCs exist purely in digital form and are typically based on blockchain or distributed ledger technology. The primary objective of introducing a CBDC is to provide a digital representation of a nation's fiat currency while retaining the centralized control and regulatory oversight that central banks possess. CBDCs are designed to combine the advantages of digital payments with the stability and trust associated with a central bank's currency.