The Atlantic Council reports 130 nations are now exploring central bank digital currencies (CBDCs), signaling a tectonic shift in monetary systems. CBDCs aim to modernize payment infrastructures, enhance financial inclusion, and counter private stablecoins’ influence. Emerging economies like Nigeria and Ukraine lead in adoption, while advanced economies focus on cross-border interoperability through projects like the BIS’s multi-CBDC arrangements.
This global push raises questions about privacy and financial sovereignty. While CBDCs could streamline remittances and reduce transaction costs, critics warn they might enable unprecedented government surveillance. The BIS survey revealing central banks’ interest in tourist/non-resident CBDC usage highlights ambitions to reshape international finance.
Implementation challenges persist, including technological scalability and public trust issues. Countries like El Salvador’s Bitcoin adoption experiment provide alternative models, creating tension between decentralized and state-controlled digital money systems. The next five years will likely see fierce competition between these paradigms.
