More and more countries are exploring digital versions of their national currencies. 134 countries and national communities are now exploring digital state currencies, according to a study by the American think tank Atlantic Council, published on Tuesday.
Just four years ago, there were only 35 countries. In almost half of the countries, these studies are already at an advanced stage. The Atlantic Council noted that the issue of digital sovereign currencies is currently being explored in all 20 leading industrialized and emerging countries (G20).
By exploring state digital currencies, central banks around the world are responding to increasing competition in digital payment transactions from companies like PayPal and Apple Pay and the rise of cryptocurrencies like Bitcoin and Ethereum.
By issuing digital central bank money – known in the professional world as ‘CBDC’ – they want to prevent digital payment transactions from being left entirely to the private sector, given the increasing decline in the use of cash.
Bahamas Pioneer
In 2020, the island nation of the Bahamas became the first country in the world to officially introduce a digital version of its currency, the “Sand Dollar.” According to the Atlantic Council, Jamaica and Nigeria have now also launched CBDCs in addition to the Bahamas.
In the autumn of 2023, the European Central Bank gave the green light for a preparatory phase on the road to a digital euro. The aim is to finalise the rules and select providers for the development of the platform and infrastructure. This phase will initially last two years.
China before introduction
The world’s largest digital currency pilot is currently underway in China. According to official information, the use of the e-CNY prototype has now nearly quadrupled to the equivalent of $987 billion (around €887.11 billion). The Atlantic Council expects the Chinese central bank to be ready to launch a digital currency in about a year.
The Bank for International Settlements released the results of a study last year that found that there could be about two dozen government digital currencies in circulation around the world by 2030.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
