Curious about the growing trend of Central Bank Digital Currencies (CBDCs) around the globe? You’re not alone. A recent report found that 105 countries, representing a whopping 95% of global GDP, are currently exploring this new form of digital currency.
This article aims to shed light on which nations have launched or are preparing for the launch of CBDCs and their implications in fostering financial inclusion and revolutionizing payment systems.
Ready to dive into the world of CBDCs? Let’s get started!
How Many Countries Have CBDCs?
The adoption of Central Bank Digital Currencies (CBDCs) varies across countries, and the landscape is continuously evolving.
Some nations, such as China, have made significant strides in developing and testing CBDCs like the digital yuan. Others, like the Bahamas, have already launched their CBDC, known as the Sand Dollar. Additionally, various countries are in different stages of exploration and development regarding CBDCs.
The exact number of countries with CBDCs can change as new initiatives are announced and tested. To stay up-to-date on the countries that have adopted CBDCs, it’s recommended to follow official announcements and consult reputable news sources for the latest information in this rapidly evolving field.
- 11 countries, including Nigeria and several Caribbean nations, have already launched their own central bank digital currencies (CBDCs) as of June 28, 2023.
- As of November 14, 2022, approximately 105 countries representing over 95% of global GDP are actively studying or piloting CBDC projects.
- CBDC adoption is driven by the desire to streamline payment systems, enhance financial stability, and adapt to the evolving landscape of digital payments.
- The launch of CBDCs highlights the potential for financial innovation and the evolution of payment systems in various countries worldwide.
CBDC Projects in Different Countries
Several countries have initiated CBDC projects, including mBridge in Thailand, Hong Kong, China, and the UAE; Project Dunbar in Australia, Singapore, Malaysia, and South Africa; and Project Sela involving the Bank of Israel and Hong Kong Monetary Authority.
mBridge (Bank for International Settlements, Thailand, Hong Kong, China, UAE)
mBridge is a big plan. It joins many banks. These are the Bank for International Settlements, and banks from Thailand, Hong Kong, China and UAE. They work on a new kind of money. This money is digital.
It makes payments easy and fast across borders. mBridge uses safe technology to do this.
Project Dunbar (Australia, Singapore, Malaysia, South Africa)
Project Dunbar is a CBDC project involving four countries: Australia, Singapore, Malaysia, and South Africa. These countries are exploring the use of central bank digital currencies to enhance their payment systems and financial innovation.
They aim to digitize their currencies and improve monetary policy in the digital economy. Project Dunbar is part of a global trend where many countries are actively evaluating CBDCs as a potential solution for economic development and advancing financial technology.
Project Sela (Bank of Israel, Hong Kong Monetary Authority)
Project Sela is a CBDC exploration project conducted by the Bank of Israel and the Hong Kong Monetary Authority. It aims to study and understand the potential benefits, risks, and use cases of central bank digital currencies.
The project involves extensive research and collaboration between these two central banks. By participating in Project Sela, both institutions aim to gain valuable insights into the feasibility and implications of introducing a CBDC in their respective countries.
This project demonstrates their commitment to exploring technological advancements in finance and staying at the forefront of financial innovation.
Project Icebreaker (Bank of Israel, Central Bank of Norway, Sveriges Riksbank, BIS Innovation Hub Nordic Centre)
Project Icebreaker is a collaboration between the Bank of Israel, the Central Bank of Norway, Sveriges Riksbank, and BIS Innovation Hub Nordic Centre. It aims to explore and research the potential uses and implications of central bank digital currencies (CBDCs).
These countries are working together to study CBDCs and their impact on payment systems, financial stability, and monetary policy. The project does not have a specific launch date yet but represents an important effort in understanding the benefits and challenges of CBDC adoption.
Project Mariana (Banque de France, Monetary Authority of Singapore, Swiss National Bank, Eurosystem BIS Innovation Hub)
The collaboration between Banque de France, Monetary Authority of Singapore (MAS), Swiss National Bank (SNB), and the Eurosystem BIS Innovation Hub is known as Project Mariana. It aims to explore the potential use cases and benefits of central bank digital currencies (CBDCs).
The participating central banks are working together to study the technological and operational aspects of CBDCs, including cross-border interoperability and payment efficiencies. By leveraging their expertise, these institutions aim to enhance financial innovation and contribute to the ongoing development in this field.
Project Jura (BIS Innovation Hub, Banque de France, Swiss National Bank, Accenture consortium)
The Project Jura is a collaboration between the BIS Innovation Hub, Banque de France, Swiss National Bank, and Accenture consortium. This project aims to explore the potential of central bank digital currencies (CBDCs) and their use cases in cross-border payments.
It focuses on developing technical prototypes and conducting experiments to understand the practical implementation of CBDCs. The project seeks to enhance financial innovation and cooperation among central banks in adopting digital currencies for efficient payment systems.
Onyx/Multiple wCBDC (Banque de France, Monetary Authority of Singapore, JP Morgan)
One notable CBDC project is Onyx, which involves collaboration between the Banque de France, Monetary Authority of Singapore, and JP Morgan. This project aims to explore the potential use cases and benefits of a wholesale central bank digital currency (wCBDC).
The participating institutions are examining how this technology can enhance cross-border transactions and improve financial market infrastructures. By working together, they hope to create innovative solutions that leverage blockchain technology and contribute to the development of a more efficient global financial system.
Project Rosalind (Bank of England, BIS Innovation Hub London)
Project Rosalind, led by the Bank of England and the BIS Innovation Hub London, is an important initiative in exploring central bank digital currencies (CBDCs). It aims to study the potential benefits and challenges of CBDC adoption.
As of November 14, 2022, around 105 countries are actively exploring CBDCs, with some already launching their own digital currencies. The development of CBDCs is driven by the desire to improve payment systems and financial stability in a rapidly evolving digital economy.
Project Rosalind contributes to this global effort by conducting research and analysis on CBDCs.
Project Aurum (BIS Innovation Hub Hong Kong, Hong Kong Monetary Authority)
Project Aurum is a collaboration between the BIS Innovation Hub in Hong Kong and the Hong Kong Monetary Authority. It aims to explore the use of central bank digital currencies (CBDCs) in cross-border payments.
The project focuses on enhancing payment efficiency, reducing costs, and increasing transparency in cross-border transactions. As of now, there are no specific launch dates or details about the implementation phase for Project Aurum.
However, it demonstrates the commitment of Hong Kong’s central bank to exploring CBDCs and their potential benefits for international financial transactions.
Project Helvetia (Swiss National Bank, BIS, SIX)
The Swiss National Bank, along with the Bank for International Settlements (BIS) and SIX Group, is working on a project called Helvetia. This project aims to explore and develop a central bank digital currency (CBDC) in Switzerland.
The goal of Project Helvetia is to understand the potential benefits and challenges of CBDC implementation. By collaborating with BIS and SIX Group, the Swiss National Bank hopes to leverage their expertise in financial technology and payment systems.
As of now, there isn’t any specific information available about the progress or timeline of Project Helvetia, but it signifies Switzerland’s interest in exploring CBDCs as part of its monetary policy strategy.
Project Jasper (Bank of Canada, Bank of England, Monetary Authority of Singapore)
Project Jasper, a collaboration between the Bank of Canada, Bank of England, and Monetary Authority of Singapore, is an initiative aimed at exploring central bank digital currencies (CBDCs).
This project focuses on researching and developing CBDC systems that could potentially enhance payment systems and monetary policy. The participating countries are working together to study the technical feasibility and implications of CBDCs in their respective jurisdictions.
Through Project Jasper, they aim to gain valuable insights into the potential benefits and challenges associated with implementing CBDCs in a real-world context.
Project Aber (United Arab Emirates, Saudi Arabia)
In the Middle East, the United Arab Emirates and Saudi Arabia are collaborating on a project called Aber to explore central bank digital currencies. This joint effort aims to develop a proof-of-concept for cross-border payments using CBDCs.
The project focuses on facilitating real-time settlements between participating banks in both countries through distributed ledger technology. By leveraging CBDCs, these nations seek to enhance financial inclusion, improve payment systems, and strengthen their economies in the digital age.
Project Polaris (Bank for International Settlements Nordic Centers)
Project Polaris is a CBDC project led by the Bank for International Settlements (BIS) Nordic Centers. It aims to explore and develop central bank digital currencies in the Nordic region.
The BIS Innovation Hub, along with central banks from Norway, Sweden, Denmark, Finland, and Iceland, are working together on this project. They are conducting research and experimentation to understand the potential benefits and challenges of introducing CBDCs in their respective countries.
By collaborating in Project Polaris, these Nordic countries aim to contribute towards the global exploration and development of CBDCs.
Key Findings and Progress in CBDC Adoption
As of June 28, 2023, eleven countries have already launched their own central bank digital currencies (CBDCs). This includes Nigeria and several Caribbean nations. The eNaira in Nigeria was unveiled in October 2021 and is one of the two fully launched CBDCs as of July 2022.
In addition to these launches, a total of nine countries, with eight in the Caribbean, had already introduced CBDCs by March 11, 2022.
It’s important to note that many other countries are exploring CBDCs. As of November 14, 2022, approximately 105 countries representing over 95% of global GDP are actively studying or piloting CBDC projects.
Almost 100 countries are evaluating their options for implementing CBDCs according to the International Monetary Fund (IMF). The development and implementation timelines for these digital currencies vary across nations due to different stages of research and development efforts.
CBDC adoption is driven by various factors such as streamlining payment systems, enhancing financial stability, and adapting to the evolving landscape of digital payments. These currencies provide potential solutions for improving financial inclusion and payment infrastructure.
Unlike cryptocurrencies like Bitcoin which operate on decentralized blockchain technology, CBDCs are centralized digital currencies controlled by central banks.
Overall, there has been significant progress made in adopting CBDCs worldwide with both pilot testing and full-scale launches taking place across multiple countries. These efforts aim to promote financial innovation while addressing challenges faced by traditional payment systems in an increasingly digitized world economy.
Timeline: Progress and Developments in CBDC Implementation
- October 2021: Nigeria unveils the eNaira, one of the two fully launched CBDCs as of July 2022.
- March 11, 2022: Nine countries, with eight in the Caribbean, have already launched CBDCs.
- November 14, 2022: Over 95% of global GDP is represented by 105 countries exploring CBDCs, with ten having fully launched a digital currency.
- As of June 28, 2023: Eleven countries, including Nigeria and several Caribbean nations, have launched CBDCs.
As of Jun 28, 2023, eleven countries, including Nigeria and several Caribbean nations, have already launched central bank digital currencies (CBDCs). This is a significant milestone in the exploration and adoption of CBDCs globally.
The launch of these digital currencies highlights the potential for financial innovation and the evolution of payment systems in various countries around the world. Further progress is expected as more countries actively explore and implement CBDCs to meet the demands of an increasingly digital economy.
What are CBDCs?
CBDCs means Central Bank Digital Currencies. They are part of currency digitization in the global economy.
How many countries have CBDCs like India and European Union?
Right now, we can’t say an exact number for sure because more and more countries are exploring digital economy and virtual currencies.
Why do countries want to start using CBDCs?
Countries want to use CBDCs to increase the speed, safety, and simplicity of digital payments.
Is having a CBDC good for a country’s economy or not?
Having a CBDC could be good as it could boost the digital economy by increasing access for everyone to virtual currencies.