Central bank digital currency (CBDC) is a type of cryptocurrency issued by the central bank. It aims to make payments more efficient, increase the central bank's role in the payments market, and reduce the use of physical cash. CBDC is gaining interest among central banks and researchers, with potential benefits for retail users. Key impacts and risks have been identified, along with conditions for successful implementation. CBDC could have significant implications for monetary policy, financial intermediation, and payments, especially in a context of negative interest rates.