Numerous nations worldwide have intensified their exploration of Central Bank Digital Currencies (CBDCs) in recent times. Back in May 2020, the consideration of CBDCs was limited to 35 countries. However, this number had risen to 105 by mid-2022. The most recent data from the Atlantic Council indicates that an even larger group of 130 countries is currently engaged in the investigation of digital iterations of their respective currencies. In aggregate, these nations make up a substantial 98% of the global GDP.
Furthermore, out of the G20 countries, 19 have progressed to an advanced stage in the development of Central bank digital currency’s. Notably, nine of these nations have already entered the pilot phase. Impressively, nearly every G20 member has made noteworthy advancements and allocated fresh resources to these initiatives within the past six months.
The key findings of the Atlantic Council’s report also underscore that “over 20 other countries are poised to commence pilot programs for their Central bank digital currency’s in 2023.” Notably, Australia, Thailand, and Russia plan to continue their pilot testing, while India and Brazil are targeting CBDC launches in 2024.
The central bank of Brazil recently designated 14 institutions to engage in the trial phase of its Central Bank Digital Currency (CBDC) program. Well-known companies such as Visa and Microsoft were chosen to partake in this initiative. The list also encompassed entities like B3, which is Brazil’s largest stock exchange, in addition to local private banks including Nubank, Bradesco, and Itaú Unibanco.
Furthermore, Banco do Brasil, the largest public bank in Brazil, was also included in the selected institutions. In India, two CBDC pilot projects were introduced in 2022. The initial project, focusing on a wholesale Central bank digital currency (CBDC-W), commenced on November 1 with the participation of nine banks. The second project, involving a retail CBDC (CBDC-R) pilot, was initiated on December 1 across four cities.
Monitoring Global CBDC Advancements
Currently, 78 nations are in the stages of conducting research and development for their Central Bank Digital Currencies (CBDCs), while 21 countries are actively engaged in pilot testing. Furthermore, approximately 11 nations have successfully introduced electronic versions of their currencies. In contrast, 16 countries have not made any progress, and two have reversed their efforts in the Central bank digital currency domain.
The Atlantic Council has highlighted that the United States has experienced a standstill in advancing retail Central bank digital currency development. In this region, a number of politicians express opposition to CBDCs. In the context of the 2024 election, Vivek Ramaswamy, a presidential candidate, recently declared himself an “opponent” of CBDCs. He contends that Central bank digital currency’s pose a significant “threat” to the freedom of the United States.
On the other hand, other countries remain committed to advancing in this area. Notably, Visa is currently sharing its Central bank digital currency expertise with the Central Bank of Azerbaijan. The collaborative efforts between the company and the central bank involve a transparent and constructive discourse to establish suitable channels of interaction and collaboration.
