A central bank digital currency (CBDC) is a digital currency issued by a central bank. In the case of a retail CBDC, the CBDC is available to the private end-user. The ECB uses the term “digital euro” to define a euro CBDC.
Diem, formerly known as Libra, is a Facebook-initiated global payment system with its own means of payment. Diem is intended to be launched soon and is designed as a value-stable crypto asset (stablecoin) that is backed by fiat currencies and short-term government bonds.
"The digitalization of the monetary system is progressing. In addition to private sector initiatives, such as the Facebook-initiated Diem project or other stablecoin initiatives, central banks are also working on their own digital currencies. The monetary system will thus undergo fundamental changes over the next decade."
Jonas Gross University of Bayreuth
The programmable euro is an innovative and digital form of the euro that is based on a DLT. It includes the euro as a stablecoin, tokenized commercial bank and e-money, or as a (DLT-based) CBDC. Primary benefits of a programmable euro are related to increased automation due to programmability, higher transaction speed, and lower counterparty risk.
"The programmable euro will play a crucial role, especially for future business models in the field of Industry 4.0 and mobility. The underlying infrastructure could and should be developed in the short term by private companies in the financial sector."
Philipp Sandner Frankfurt School Blockchain Center