- Study by Atlantic Council on CBDC finds 134 countries exploring digital currencies.
- Josh Lipsky highlights that China, Europe and Japan are far ahead.
- There are currently 36 pilot projects underway with China’s e-CNY being traded by 260 million people.
A recent study by the Atlantic Council found that 134 countries, representing 98% of the global economy, are exploring digital versions of their currencies. Over half of these countries are in advanced stages of development, pilot, or launch. The United States is one of the few major economies that is lagging behind in this area.
Josh Lipsky of the Atlantic Council pointed out how much further ahead China, Europe and Japan are.
The biggest headline here is that the divergence between the world’s largest central banks over CBDCs (Central Bank Digital Currency) is growing,
Supporters of digital currencies say they will allow new functionality and provide an alternative to physical cash. However, they have also raised concerns about the potential for government surveillance.
There are currently 36 pilot projects underway around the world, including China’s e-CNY which is being trialed with 260 million people. The Bahamas, Jamaica and Nigeria are the first countries to launch their own digital currencies.
The report also found that work on wholesale CBDCs has doubled since Russia’s invasion of Ukraine. There are currently 13 cross-border wholesale projects underway, including one named “mBridge” which connects China, Thailand, the UAE, and Hong Kong.
All BRICS member states – Brazil, Russia, India, China and South Africa – are at advanced stages of developing their own digital currencies. Experts predict that there could be a major wave of launches by 2027.
China’s digital yuan is the largest and most advanced pilot, but it is not clear when it will be fully launched. “That is the question,” Lipsky said. “Not this year, but 2025 or 2026? It’s hard to say.”
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