In the first quarter of 2024, the development of central bank digital currencies (CBDC) globally has increased significantly.
This is indicated by the data published by the Atlantic Council platform, indicating that the number of CBDC projects, or Central Bank digital currencies, has registered a new record, with a total of 134 countries advancing in the creation of this type of currencies.
According to the platform, this figure represents a substantial increase compared to the 117 CBDC projects counted just a few months ago.
98% of the global economy is advancing in the development of digital currencies
The growth in the development and adoption of CBDCs signals a growing trend towards the digitalization of finance globally. The platform highlighted that central banks are adapting to the new era, in which money and payments have become increasingly digital.
Financial institutions and governments in different countries have been recognizing the importance of adapting to the digital era, creating their own digital currencies in order to increase the efficiency of payments, facilitate financial inclusion, reduce the costs associated with a transaction and, in general, improve transparency. So while CBDCs pose a risk to users' privacy, these currencies can also streamline financial transactions and facilitate the resilience and fluidity of monetary and fiscal policy, the Atlantic Council said.
Financial Inclusion vs Privacy
From a positive perspective, the adoption of CBDCs can contribute to financial inclusion and provide cheaper and better access to money. However, these types of digital currencies also encompass challenges, which are related to cybersecurity and the protection of user privacy.
Even so, there are currently 134 countries, representing 98% of the world's GDP, who are exploring a CBDC.
As noted by the platform, in May 2020 there were only 35 countries exploring a CBDC, representing a 380% increase since then. On the other hand, of the 134 countries exploring a central bank digital currency, 68 countries are in an advanced phase of exploration.
The current panorama of CBDCs in the world
Recent data shows significant progress in the number of CBDC projects in development today. According to Atlantic Council researchers, this notable increase suggests that practically the entire world economy is in the process of exploring digital implementations of its own fiat currencies.
Source: Atlantic Council
It is worth mentioning that three nations, Bahamas, Jamaica y Nigeria, have fully implemented their own CBDC.
Regarding the countries that are most advanced in the development of a CBDC, China stands out with the world's largest digital currency pilot, with 260 million e-CNY wallets in 25 cities so far.
In relation to the digital euro, the platform highlighted that this CBDC is in a 2-year preparation phase, which ends in 2025, as indicated by the European Central Bank (ECB).
Regarding the progress of the United States in the digital dollar, the platform noted that the nation has stagnated compared to other countries. Furthermore, in the country, CBDCs have become part of the campaign of several prominent politicians, who They oppose its development. Even, as Bit2Me News reported, in the United States there are 13 states that have already implemented or are seeking the approval of laws that prohibit the use of a digital currency within their jurisdictions, for representing a risk to financial privacy and the stability of the assets. citizens.
Interoperability of the global economy
Although most countries are developing their CBDCs to digitize their economies and offer better services to their citizens, others are exploring these digital currencies. new forms of international collaboration.
For example, Saudi Arabia, Iran and the United Arab Emirates are exploring cross-border wholesale CBDCs, while BRICS member countries have actively promoted the development of an alternative payments system to the US dollar.
In conclusion, the growing interest and development of CBDCs represent an important step towards the digitalization of finance worldwide. While there are challenges and risks associated with this transformation, it also opens up new opportunities to improve efficiency and financial inclusion.
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