CBDC Exploration Underway in 134 Countries, Covering 98% of Global Economy

(Crypto News)-18/09/2024

The Atlantic Council’s latest report shows that 134 countries, representing 98% of the global economy, are now exploring central bank digital currencies (CBDCs), up from 35 in 2020.

Additionally, 66 nations have advanced their efforts. Meanwhile, the Bahamas, Jamaica, and Nigeria have already launched CBDCs and are expanding the reach of their retail versions within their countries.

Moreover, 44 countries — including Australia, Indonesia, Singapore and Malaysia — are running CBDC pilot programs. That’s up from 36 last year. This growth reflects global efforts to address declining cash use and challenges from cryptocurrencies like Bitcoin.

China’s Digital Yuan Leads Global Digital Currency Efforts

All original BRICS nations—Brazil, Russia, India, China, and South Africa—are also testing CBDCs. Since last year, BRICS has pushed for an alternative payment system to the dollar.

China’s digital yuan, the e-CNY, remains the largest CBDC pilot globally. By June 2024, its transaction volume reached $986b across 17 regions, impacting sectors like education, healthcare, and tourism. This marks a nearly fourfold increase from the $253b reported in June 2023, according to the think tank.

Project mBridge Expands, US Joins Agorá Initiative

Meanwhile, after Russia’s invasion of Ukraine and G7 sanctions, cross-border wholesale CBDC projects more than doubled to 13. Among them, Project mBridge stands out, connecting financial institutions in China, Thailand, the UAE, Hong Kong and Saudi Arabia, with plans for further expansion this year.

The US has also joined Project Agorá, a cross-border wholesale CBDC initiative with six other major central banks. In May, the US House passed a bill banning the direct issuance of a retail CBDC, but it is still awaiting Senate action. CBDCs remain an issue in the ongoing US presidential campaign.

Earlier this year, the World Economic Forum reported that over 98% of central banks worldwide are involved in CBDC research, pilot programs, or rollouts to enhance access to central bank money.