Research reveals 98% of global economy exploring CBDC solutions

According to a new report, 134 countries, accounting for 98 percent of the global economy, are exploring digital currencies and 44 are currently piloting CBDCs.

Central bank digital currencies are gaining widespread traction, with nearly 99% of the global economy now focused on the technology, according to data from the US-based Atlantic Council think tank. As of September, 134 countries around the world were exploring CBDCs in some form, up from 35 in May 2020.

The data shows that more than 65 countries, including India, Australia, and Brazil, are in advanced stages of CBDC exploration, whether in development, pilot, or launch. According to the think tank, each G20 country is currently researching its own CBDC, with 19 in advanced stages of exploration.

Countries exploring CBDCs | Source: Atlantic Council

Despite this global interest, only three countries — the Bahamas, Jamaica, and Nigeria — have fully launched CBDCs, and all are working to expand their domestic reach. The push for digitalization also appears to be a geopolitical goal, the report notes, as all of the original BRICS member states — Brazil, Russia, India, China, and South Africa — are experimenting with CBDCs as “an alternative payment system to the dollar.”

The Atlantic Council notes that “since Russia’s invasion of Ukraine and response to G7 sanctions, wholesale cross-border CBDC projects have more than doubled,” with more than a dozen projects currently focused on connecting banks in China, Thailand, and the United Arab Emirates.