Revolutionizing Money: Global Move Towards CBDCs Gains Momentum
• G7 economies and over 20 additional countries are in development stages for CBDCs, according to the Atlantic Council.
• China’s CBDC pilot is set to expand to most of the country in 2023 — currently reaching 260 million people, according to the AC.
• Over 20 countries are set to take significant steps towards piloting a CBDC in 2023, including Australia, Thailand, Brazil, India, South Korea, and Russia.
The global move towards central bank digital currencies (CBDCs) has continued to gain momentum in the past few years. According to the Atlantic Council (AC), all G7 economies had moved into the development stage of a CBDC by December 2022. In addition, over 20 countries are set to take significant steps towards piloting a CBDC in 2023, including Australia, Thailand, Brazil, India, South Korea, and Russia.
The AC’s December 2022 report also found that 11 countries had fully launched a digital currency, while a further 17 were in the pilot phase, with 72 in the research and development phase. China’s CBDC pilot is set to expand to most of the country in 2023 — currently reaching 260 million people, according to the AC.
The adoption of CBDCs is seen by many as a way to improve cross-border payments, mitigate financial crime, increase financial inclusion and address risks posed by other forms of digital currency. The Bank of England, Federal Reserve Bank of New York, Monetary Authority of Singapore and central banks in Spain and Switzerland are some of the institutions that have already launched their own CBDCs.
In December 2022, the governor of India’s central bank also expressed a strong interest in pursuing a CBDC. This sentiment was echoed in the AC’s report, which noted that CBDCs „will increasingly become central to the future of global payments and the global financial system.“
The AC’s report highlighted the need for CBDCs to be designed carefully, with attention paid to security, privacy and scalability. It also suggested that CBDCs should be tailored to the needs of individual countries, and that their development should be closely monitored by governments.
The report concluded that CBDCs have the potential to revolutionize the way money is used, both domestically and internationally. As more countries move into the development phase of CBDCs, the global financial system is likely to undergo a significant transformation.