In a rapidly digitalizing global economy, central banks across the world are now turning their attention toward Central Bank Digital Currencies (CBDCs). According to a new study from the U.S.-based think tank Atlantic Council, central banks in 134 countries are currently exploring the implementation of CBDCs, marking a significant rise from just 35 countries in 2020.
This shift underscores the growing importance of digital currency as a pivotal component of the financial landscape, accounting for 98% of global GDP.
What is a Central Bank Digital Currency (CBDC)?
A Central Bank Digital Currency (CBDC) is a form of digital money, issued and regulated by a nation’s central bank. Unlike decentralized cryptocurrencies like Bitcoin, which operate without oversight, CBDCs are backed by central banks, ensuring their stability and reliability. CBDCs aim to modernize the way money is exchanged, offering a secure, state-backed alternative to other forms of digital currency.
With the rise of cashless payments and digital transactions, central banks around the world have recognized the need to offer public digital currency options or risk falling behind in the fast-moving financial landscape.
Exponential Growth of CBDC Projects Worldwide
The exploration and development of CBDCs have grown exponentially in recent years. In May 2020, only 35 countries were considering CBDCs. By 2024, that number has surged to 134 countries, representing a diverse range of economic systems. Moreover, 66 countries have moved into advanced stages of CBDC development, including pilot programs and full-scale launches.
Among the G20 nations, 19 countries are currently in advanced phases of CBDC exploration. Thirteen of these countries, including major economies like Brazil, India, Japan, Russia, and Turkey, have already initiated pilot projects for their CBDCs, setting the stage for broader adoption in the near future.
