Central Bank Digital Currencies (CBDCs) have gained significant attention as more than four-fifths of the world’s central banks engage in pilots or other CBDC activities. With 93% of central banks exploring CBDC development and nearly 20% expected to issue digital currencies in the near term, the rise of CBDCs is set to reshape the financial landscape.
| Country | CBDC Development |
|---|---|
| Bahamas | Fully live retail CBDC (Sand Dollar) |
| India | Leads PwC’s 2023 CBDC Index with digital rupee |
| Ukraine | Accelerating e-hryvnia development due to Russian invasion |
| Russia | Planning to launch digital ruble in 2025 |
| European Union | Likely to announce digital euro plans in 2023, potential circulation by 2026 |
As CBDCs gain traction, their impact on the cryptocurrency market remains a topic of discussion. While some view CBDCs as potential competitors to existing cryptocurrencies and stablecoins, others believe they may complement and coexist within the digital currency ecosystem. The interaction between CBDCs and cryptocurrencies will have implications for monetary policy, financial inclusion, and the future of money.
As of mid-2023, 130 countries, representing 98% of global GDP, were developing their own central digital currency, with 64 of them in an advanced state of exploration.
As the world navigates this new era of digital currencies, stablecoins and CBDCs are poised to play a pivotal role in shaping the financial landscape. By bridging the gap between traditional finance and the crypto world, these innovative digital assets are paving the way for a more inclusive, efficient, and interconnected global financial system.
