The global financial landscape is undergoing a transformative shift as nations race to digitize their monetary systems. According to a recent study by the U.S.-based Atlantic Council think tank, 130 countries—representing 98% of the global economy—are now actively exploring the development of central bank digital currencies (CBDCs). Nearly half of these countries are already in advanced stages, including development, pilot testing, or full launch phases.
This widespread movement reflects growing concerns over declining cash usage, increasing competition from cryptocurrencies like Bitcoin, and the rising influence of Big Tech in financial services. Governments are recognizing the need to modernize payment infrastructures while maintaining control over national monetary policy.
👉 Discover how digital currencies are reshaping global finance today.
Global Momentum Behind CBDC Development
One of the most striking findings from the Atlantic Council report is that all G20 nations except Argentina have entered at least an advanced phase of CBDC exploration. This includes major economies such as the United States, Japan, Germany, and Canada, signaling a coordinated global push toward digital monetary systems.
China stands out as a leader in real-world implementation. Its digital yuan pilot program now spans 260 million people and supports over 200 use cases, ranging from everyday e-commerce transactions to government stimulus disbursements. The scale and integration of this project underscore China’s strategic ambition to lead in digital finance.
Other emerging economies are following closely. India and Brazil plan to roll out their own retail CBDCs within the next year, aiming to enhance financial inclusion and streamline domestic payments. Meanwhile, the European Central Bank is preparing for a digital euro pilot, with a potential public launch targeted for 2028.
Australia, Thailand, South Korea, and Russia also intend to continue pilot testing throughout the year, exploring both domestic and cross-border applications of digital currencies.
Regional Leaders and Early Adopters
While much attention focuses on large economies, several smaller nations have already taken bold steps forward. Eleven countries, particularly in the Caribbean region and Nigeria, have officially launched their CBDCs.
Nigeria introduced the eNaira in 2021, becoming the first African country to do so. Despite initial enthusiasm, adoption has been slower than expected due to limited public awareness and infrastructure challenges. Still, the government continues efforts to integrate the eNaira into mainstream banking and merchant networks.
In contrast, Caribbean nations like the Bahamas and Eastern Caribbean Currency Union members have reported more positive early results. Their small, geographically dispersed populations benefit from faster, cheaper digital transactions across islands where traditional banking access is limited.
Sweden’s e-krona pilot remains one of Europe’s most advanced initiatives. With cash usage plummeting across Scandinavia, Sweden is testing various technical models to ensure privacy, security, and resilience in a potential future cashless society.
Similarly, the Bank of England is advancing research on a digital pound, aiming for possible deployment in the second half of the decade. Officials emphasize that any rollout would complement—not replace—physical cash and existing payment methods.
The U.S. Digital Dollar: Progress and Challenges
Despite its dominant role in global finance, the United States lags behind many peers in retail CBDC development. According to the Atlantic Council report, work on a consumer-facing digital dollar has effectively stalled.
However, progress continues on a wholesale CBDC, designed for interbank settlements rather than public use. This version could improve efficiency in financial markets but does not address broader financial inclusion goals.
The Federal Reserve has repeatedly stated that launching a retail CBDC requires congressional approval. In March 2022, President Joe Biden issued an executive order directing federal agencies to assess the risks and benefits of a digital dollar, including implications for privacy, cybersecurity, and monetary stability.
Still, no legislation has moved forward, leaving the U.S. playing catch-up in what many see as a strategically important domain.
👉 See how leading economies are preparing for the next era of money.
Why Are Countries Pursuing CBDCs?
Several key drivers are accelerating global interest in CBDCs:
- Declining cash usage: As societies become increasingly cashless, central banks seek to maintain sovereignty over money issuance.
- Financial inclusion: Digital currencies can provide secure banking access to unbanked populations.
- Monetary policy efficiency: CBDCs allow for faster implementation of economic stimulus measures.
- Geopolitical resilience: Sanctions on countries like Russia and Venezuela have prompted allies—even long-standing ones—to explore alternatives to U.S.-dominated payment systems like SWIFT, Visa, and Mastercard.
“Since Russia’s invasion of Ukraine and the G7 sanctions response, wholesale CBDC developments have doubled,” the Atlantic Council noted. There are now 12 multi-country cross-border CBDC projects underway, aiming to create faster, cheaper international payment corridors.
Challenges and Setbacks
Despite strong momentum, CBDC initiatives face significant hurdles. Nigeria’s eNaira experience highlights how launching a digital currency doesn’t guarantee adoption. Technical barriers, lack of user trust, and insufficient merchant integration can all limit real-world impact.
Senegal and Ecuador have both discontinued their CBDC programs due to low demand and operational complexities. These cases serve as cautionary tales about the importance of public engagement and robust infrastructure planning.
Privacy concerns also loom large. Unlike decentralized cryptocurrencies, CBDCs are fully traceable by central authorities—raising questions about surveillance and data protection.
Frequently Asked Questions (FAQ)
Q: What is a central bank digital currency (CBDC)?
A: A CBDC is a digital form of a country’s official currency issued and backed by its central bank. It functions similarly to physical cash but exists in electronic form.
Q: How is a CBDC different from cryptocurrency?
A: Unlike decentralized cryptocurrencies like Bitcoin, CBDCs are centralized, regulated, and fully integrated into national monetary systems.
Q: Will CBDCs replace cash?
A: Most central banks intend CBDCs to coexist with physical money rather than replace it entirely, at least in the near term.
Q: Are CBDCs safe?
A: They are designed with high security standards, though concerns remain about data privacy and government oversight.
Q: Can I use a CBDC outside my country?
A: Currently, most CBDCs are designed for domestic use. However, cross-border pilot projects are exploring international interoperability.
Q: Is the U.S. launching a digital dollar soon?
A: No immediate launch is expected. While research continues on a wholesale version, development of a retail digital dollar remains stalled without congressional action.
👉 Stay ahead of the curve—learn how digital currencies could impact your finances.
The Road Ahead
As more countries advance their CBDC programs, collaboration across borders will be essential. Interoperability standards, regulatory alignment, and cybersecurity frameworks must evolve in tandem with technological innovation.
The coming years will likely see increased experimentation—with some projects succeeding and others being scaled back or abandoned. Yet one trend is clear: the era of purely physical money is fading, and digital currency is poised to become a cornerstone of modern finance.
For individuals and institutions alike, understanding this shift is no longer optional—it’s imperative.