Money is a contract between two or more parties. The arrangement solves a central challenge in trade referred to as the coincidence of wants problem

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The term “money” is often used as a synonym for currency. However, the determination of the former qualification is observably a distinction left entirely to users of the latter. The Federal Reserve has taken the lead on discussing a potential U.S. CBDC with a paper titled “Money and Payments: The U.K. Dollar in the Age of Digital Transformation” The paper enumerates multiple forms of money, differentiating these mostly by their credit and liquidity risks across the central bank, commercial bank and 'nonbank money'