Figure 18.5: Retail CBDC Payment Communication

(Source: https://www.bloomberg.com/news/articles/2021-03-22/here-s-how-a-

central-bank-digital-currency-could-work-chart)

18.3.1.2.1 Indirect CBDC

Indirect CBDC is indirectly issued by the central bank and

intermediary banks handle the retail part. It is mostly used between

financial institutions for payment.

18.3.1.2.2 Direct CBDC

Direct CBDC, as the name suggests, is directly issued by the central

bank to individuals or financial institutes where the central bank

keeps a record of all the money transfers in real time.

18.3.1.2.3 Hybrid CBDC