In the late 1600s, the introduction of bank notes changed the financial system forever. Fast forward to today, and another monumental change is expected to occur through central bank digital currencies (CBDC). A CBDC adopts certain characteristics of everyday paper or coin currencies and cryptocurrency. It is expected to provide central banks and the monetary systems they govern a step towards modernizing. But what exactly are CBDCs and how do they differ from money we use today? To better understand a CBDC, it helps to first understand the taxonomy of money and its overlapping properties. For example, the properties ... (full story)