Digital currency, such as cryptocurrencies like Bitcoin or central bank digital currencies (CBDCs), represents a digital form of money that operates independently of traditional banking systems. While cryptocurrencies are decentralized and often operate on blockchain technology, CBDCs are issued and regulated by central banks like the Federal Reserve.

Central-Bank Digital Currencies Are Coming—Whether countries are ready or not the game-changing development could have a profound impact on the banking system as we know it. But few people truly understand it.