What is Central Bank Digital Currency [CBDC]. New Digital Currency and how it works Central Bank Digital Currency CBDC will be equal to Indian Rupee. CBDC is the legal tender issued by a central bank in a digital form. Though the concept of CBDCs was directly inspired by Bitcoin, it is different from decentralised virtual currencies and crypto assets like Bitcoins. CBDC has the potential to provide significant benefits, such as reduced dependency on cash, higher seigniorage due to lower transaction costs, reduced settlement risk, etc.