Central Bank Digital Currency Momentum Growth: Insights from the Atlantic Council

CBDC Central Bank Digital Currency Momentum

A total of 134 countries, representing 98 percent of the global economy, are now exploring central bank digital currencies (CBDCs). Almost half of these countries are at an advanced stage, with pioneers like China, the Bahamas, and Nigeria experiencing increasing usage of their digital currencies.

Atlantic Council Findings

The research from the Atlantic Council think-tank indicates that all G20 nations are investigating CBDCs, showing an increase in piloting countries from 36 to 44. This movement responds to declining cash usage and the challenges posed by the rise of bitcoin and digital banking solutions.

• Notable increases in usage in the Bahamas, Jamaica, and Nigeria, where CBDCs have already launched.
• China's e-CNY pilot saw a significant uptick in transactions, reaching 7 trillion yuan.
• The European Central Bank is testing the digital euro, while the U.S. is collaborating with other central banks on a cross-border CBDC initiative.

Despite these developments, the U.S. faces domestic concerns around CBDCs. The House of Representatives passed a bill to restrict retail CBDC issuance, highlighting ongoing debates in the upcoming presidential election.

Global Perspectives on CBDCs

In light of geopolitical shifts, 'wholesale' CBDC projects have doubled since recent global events. The mBridge project, linking currencies from multiple nations, is anticipated to grow further. Meanwhile, Russia's digital rouble pilot is now in limited use, alongside Iran's efforts on a digital rial.

As this landscape evolves, the implications of CBDCs for the future of cryptocurrency remain significant.