CBDCs are designed to be a secure and efficient digital alternative to physical cash and other forms of traditional money. They enable central banks to have greater control over monetary policy, improve financial inclusion, modernize the payment system and increase transaction efficiencies. Unlike cryptocurrencies, CBDCs are state-controlled and have a stable value as they are backed by the issuing government. CBDCs vary in features, including user anonymity and access rules, and can be designed for retail (available to the general public) or wholesale purposes (transacted between financial institutions).