- All the G20 countries except Argentina are developing a Central Bank Digital Currency.
- According to research, 98% of the global economy are now exploring digital versions of their currencies.
- Several countries in the Caribbean, and Nigeria have launched native CBDCs.
All the G20 countries except Argentina are developing a Central Bank Digital Currency, CBDC. That marks the growing trend of CBDC development among most nations.
According to research by the U.S.-based Atlantic Council think tank, 130 countries representing 98% of the global economy are now exploring digital versions of their currencies. The study shows that almost half of these countries are in the advanced development, pilot, or launch stages of their CBDCs.
Several countries in the Caribbean, and Nigeria are among eleven countries that have launched native CBDCs. China, whose CBDC development is the most popular, has progressed with its pilot testing and reached 260 million people. The testing process has covered 200 scenarios across e-commerce to government stimulus payments.
While India and Brazil target 2024 to launch their respective CBDCs, the European Central Bank (ECB) has mapped out a plan to launch its version by 2028. India, Brazil, and the ECB are over 20 countries targeting to launch pilot phases of their CBDCs this year.
Despite the grounds covered by several economies around the world in CBDC development, the United States, arguably the largest economy in the world, appears to be lagging. According to the Atlantic Council’s research, work on the retail version of the US CBDC has stalled. Only the wholesale version involving banks appears to be “moving forward”.
Considering the status of the US dollar in the global financial system, a native CBDC could have significant consequences. That could be behind the “careful” application in the developmental process of the technology.
In January 2023, the Federal Reserve said the decision to launch a CBDC in the United States lies with Congress.
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