Central Bank Digital Currency is a fiat currency issued in digital form, backed by a central bank.
A CBDC is a digital form of central bank money that is widely available to the general public. The term "Central bank money" refers to money that is a liability of the central bank.
In most countries, there are currently two types of central bank money: physical currency issued by the Central Bank and digital balances held by commercial banks at the Central Bank
While the general public have long held money predominantly in digital form—for example in bank accounts, payment apps or through online transactions—a CBDC would differ from existing digital money available to the general public because a CBDC would be a liability of the Central Bank, not of a commercial bank.