• About Us
  • Careers
  • Contact
No Result
View All Result
Wednesday, June 4, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result

Why We Won’t See CBDCs Everywhere

31 October 2024
in CBDC, Markets
Reading Time: 6 mins read
101 8
Home Explore CBDC

Contents

Toggle
  • Implementing CBDCs on a Global Scale Isn’t Feasible
  • The Politics at the Heart of CBDC Development
  • The Way Forward?

Central Bank Digital Currencies (CBDCs) have become a major point of interest worldwide. As digital versions of national currencies, they hold the promise to revolutionize payment systems, making transactions faster, cheaper, and more accessible. They could even play a major role in extending financial services to unbanked populations and improving costly cross-border payments.

For instance, business-to-business (B2B) cross-border payments reached a staggering $39.3 trillion in 2023, a huge expense CBDCs could help reduce. While this idea is far from new, research into CBDCs has gained significant momentum recently.

Back in 2020, only 35 countries were actively exploring the development of a CBDC. Fast forward to today, and that number has jumped to 134, representing an impressive 98% of the global economy, according to the Atlantic Council. The rise of CBDCs aligns with the increasing digitization of finance and the need for governments to maintain control in an evolving financial world.

However, while many countries are keen to explore the idea, the actual implementation of CBDCs is moving more slowly. Of those 134 exploring CBDCs, only 66 nations have advanced to pilot programs or other significant developmental stages. To date, only three countries—Nigeria, Jamaica, and the Bahamas—have fully launched CBDCs.

Number of countries and currency unions exploring CBDCs
Number of countries and currency unions exploring CBDCs. Source: Atlantic Council

For most other nations, launching a digital currency is still a distant goal.  Many of them are cautiously advancing their CBDC initiatives, but these projects sometimes feel more like responses to hype than committed steps toward implementation. Experts estimate that global CBDC adoption could still be two decades away. 

Implementing CBDCs on a Global Scale Isn’t Feasible

The global rollout of Central Bank Digital Currencies (CBDCs) is facing major challenges, making it unlikely that they will become common anytime soon. Even though there is growing interest and research into CBDCs, strong public doubt and political issues are slowing down progress.

In countries like the U.S. and Canada, what people think is playing a crucial role in deciding the future of digital currencies. A 2023 survey in Canada found that 85% of participants would reject a digital Canadian dollar.

Respondents' preference to use a digital Canadian dollar in the future
Respondents’ preference to use a digital Canadian dollar in the future. Source: Bank of Canada

Most of this concern comes from fears about privacy. Many Canadians worry that a digital currency would lead to more government monitoring of their finances, which has made them stick with their current payment methods. As a result, the Bank of Canada decided to rethink its plans to create a digital currency.

READ MORE: Why Canada’s Central Bank is Halting Plans for a Digital Canadian Dollar

A similar scenario is playing out in the U.S., where scepticism toward CBDCs is very high. According to a Cato Institute poll, only 16% of Americans supported the idea of a CBDC in 2023, with privacy concerns being the major reason for the opposition. Interestingly, just 28% of those polled were even aware of what a CBDC is.

US Citizens and their stance towards CBDCs
US Citizens and their stance towards CBDCs. Source: CATO

In response, governments are treading carefully with their plans for these currencies. U.S. Federal Reserve Chair Jerome Powell recently stated the U.S. is “nowhere near” launching a digital dollar. This hesitant stance is also seen globally; a 2023 report from the CFA Institute found that 34% of people in other countries oppose their central banks issuing digital currencies.

Meanwhile, launching CBDCs would also require an overhaul of current financial systems, with new regulations, robust cybersecurity measures, and enhanced data protection. This might also be a good reason why global policymakers and financial institutions appear reluctant to implement these sweeping changes.

RELATED: Norway’s Central Bank to Announce CBDC Decision in 2025

The Politics at the Heart of CBDC Development

CBDCs are increasingly entangled in political debates, especially in the U.S. Republican leaders, including figures like Donald Trump, have openly criticized digital currencies. Though some Democratic policymakers have cautiously explored CBDCs, the polarized landscape means that the rollout of a U.S. digital dollar is unlikely under any administration in the near term.

This political divide, coupled with the logistical complexity of deploying CBDCs, complicates global adoption prospects. As long as CBDCs remain a contentious issue, it’s challenging to see their potential outweighing the significant roadblocks.

The Way Forward?

A more practical path in the digital currency landscape may lie with stablecoins, which offer many of the benefits associated with CBDCs while enjoying broader public appeal. Unlike CBDCs, which are issued by central banks and often perceived as government-controlled, stablecoins are privately issued and decentralized.

This structure enhances their appeal to both consumers and businesses, presenting a more accessible and immediately implementable solution. By sidestepping the need for an extensive financial system overhaul, stablecoins can provide economic utility with fewer barriers to adoption.

Today, the stablecoin market stands strong, with a total capitalization of approximately $172.45 billion. Transaction volumes from January 2022 to July 2024 show a sustained, growing interest, underscoring stablecoins’ expanding role in digital finance.

Stablecoin transaction volumes from January 2022 to July 2024
Stablecoin transaction volumes from January 2022 to July 2024. Source: Coinbase & Glassnode

As it stands, it appears that the governments around the world recognize this. Many have started introducing regulations specific to their issuance and distribution, indicating a significant shift toward more legitimization. 

As governments adapt their financial systems for a digital future, the hype around CBDCs may persist, but that doesn’t guarantee their success. There are no clear success stories yet, so the path forward for CBDCs remains murky.

In the meantime, stablecoins will continue to thrive, capitalizing on their public acceptance and demonstrating the potential of digital currencies in today’s financial ecosystem. Whether CBDCs eventually take off or remain a niche project, the race toward digital currencies is clearly underway, albeit with no assured outcome.

 

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence. 

 

If you would like to read more market analyses like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

Take control of your crypto  portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Share64Tweet40Share11
Previous Post

Missed High-ROI Opportunities: Why Qubetics Could Be the Next Big Thing After Arweave

Next Post

The Future of Blockchain: Why Qubetics and Other Cryptos Stand Out Among Top Cryptocurrencies in 2024

Olayinka Sodiq

Olayinka Sodiq

Olayinka Sodiq is a seasoned crypto and blockchain writer with over 5 years experience in the fintech industry. With a deep passion for decentralized technology, Olayinka crafts insightful and engaging content that demystifies complex blockchain concepts for a global audience. His work has been featured in leading publications (Business Insider Africa, Tradingbeasts.com, and The Trading Bible), where he is known for blending technical expertise with a clear, accessible writing style. Olayinka holds a degree in English and is a sought-after speaker at blockchain conferences worldwide

Related Posts

Hello, crypto fam! It’s the final weekend roundup for May—how time flies, even in a space that never sleeps. We hope May treated you well, and here’s wishing you even more wins in the weeks ahead. If you haven’t subscribed yet, now’s the perfect time to hit that subscribe button and stay in the loop with all the latest Web3 updates! As always, here’s a quick recap of everything that went down this week. Enjoy! Biggest Story Circle Freezes $58M in USDC Amid LIBRA Memecoin Scandal Circle, issuer of the USDC stablecoin, has frozen nearly $58 million linked to the controversial LIBRA memecoin project. The freeze targeted two Solana wallets connected to LIBRA’s deployers, following a class-action lawsuit filed in New York where investors allege insider fraud. Blockchain firm Arkham confirmed Circle’s use of multisig authority to halt transactions, marking a major escalation in one of 2025’s most prominent crypto scandals. LIBRA surged after Argentine President Javier Milei promoted it as a tool for small businesses, reaching over $5 and a $4 billion market cap within an hour. However, a massive insider dump crashed its value by 90%, resulting in $250 million in retail losses. The fallout has sparked political unrest in Argentina and may set new legal precedents in crypto accountability. Other News Making Waves Elon Musk confirms departure as White House cost-cutting czar, ending his controversial tenure leading DOGE, a department created under Trump to slash federal spending and jobs (More) Former CFTC Chair Rostin Behnam warns the U.S. crypto market will stay largely unregulated unless Congress expands the agency’s authority over digital assets like Bitcoin and Ether (More) ASIC sues former Blockchain Global director Allan Guo over the ACX Exchange collapse, accusing him of misusing customer funds and falsifying company records (More) Outgoing CFTC Commissioner Christy Goldsmith Romero warns that the agency’s leadership vacuum threatens balanced crypto regulation and effective oversight (More) Swiss crypto investor to surrender after 28-year-old Michael Carturan escaped a $30M crypto-related kidnapping involving electrocution and torture inside a Soho apartment (More) Michael Saylor slams onchain proof-of-reserves at Bitcoin 2025, calling it a security threat that exposes institutional wallets to tracing and attacks (More) French police arrest over a dozen suspects, including minors, tied to crypto-related kidnapping rings targeting Parisian crypto entrepreneur families (More) Sygnum hires ex-CFTC Chair Christopher Giancarlo as senior policy adviser to steer regulatory strategy amid booming institutional crypto interest (More) Dedaub reveals Cetus DEX exploit used AMM logic flaw to drain $223M by manipulating liquidity pools via single-token injections and slippage abuse (More) Around the World: Bold Moves and Crypto Regulations NYC Mayor Eric Adams pushes for a municipal “Bitbond” to integrate Bitcoin into public finance and renews calls to repeal the burdensome BitLicense regulation to revive New York’s crypto ecosystem. (More) Pakistan plans to establish a strategic Bitcoin reserve and national crypto wallet, while allocating 2,000 megawatts of surplus electricity to Bitcoin mining and AI data centers. (More) White House AI and crypto lead David Sacks hints at potential U.S. Bitcoin purchases under a “budget-neutral” policy, leveraging a March 6 executive order authorizing such acquisitions. (More) IMF approves a $120 million disbursement to El Salvador but demands withdrawal from the Chivo wallet and a halt to Bitcoin expansion, clashing with Bukele’s continued daily BTC purchases. (More) Thailand to allow tourists to spend crypto linked to credit cards, shielding local merchants from volatility while advancing broader fintech reforms and launching digital government bond tokens. (More) Pakistan earmarks 2,000 megawatts of electricity for Bitcoin mining and AI data centers, turning energy surpluses into digital infrastructure growth amid rising tech investment initiatives. (More) Dubai launches MENA’s first tokenized real estate platform, Prypco Mint, enabling UAE residents to invest in property from just Dh2,000 through fractional ownership. Backed by major regulators and institutions, the initiative aims to tokenize 7% of Dubai’s property market by 2033. (More) Market Trends: Winners and Losers Top 5 Gainers 📈 According to data from CoinGecko, these are the five biggest gainers of the week: Zebec Network +121.78%, from $0.00290855 to $0.00645154 Central African Republic Meme +155.65%, from $0.02301762 to $0.058874 WalletConnect Token +94.71%, from $0.590721 to $1.15 NATIX Network +101.79%, from $0.00094523 to $0.00190804 Undeads Games +54.73%, from $0.695351 to $1.076 Top 5 Losers 📉 According to data from CoinGecko, the five biggest losers of the week are: Efinity -15.36%, from $0.616844 to $0.522099 Hey Anon -18.65%, from $6.22 to $5.06 Based Fartcoin -31.02%, from $0.00043206 to $0.00029793 B3 -25.26%, from $0.00463979 to $0.00346849 Covalent X Token -19.45%, from $0.04228250 to $0.03405899 Project Spotlight Gomble Games Launched GOMBLE BUILDERS: A Community-Powered Web3 Gaming Platform Gomble Games, creators of the hit Web3 title EggDrop, has launched GOMBLE BUILDERS, a collaborative game development platform where communities, NFT holders, and developers co-create games and share in the rewards. Unlike most Web3 projects, these games are built for mainstream mobile users, blending user-generated content with wide accessibility. Through asset licensing, AI tools, and integrated IPs, contributors can influence gameplay and earn revenue from their creations. Why It Matters: GOMBLE BUILDERS bridges Web3 innovation with Web2-scale reach, offering a new model where ownership, creativity, and financial upside are shared. With support from major partners and powered by the $GM token, it’s redefining game development as a collaborative, inclusive economy for global players. Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence. If you want to read more market analyses like this one, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community. Your Weekend Crypto Roundup | May 2025 (Week 5)
Markets

Your Weekend Crypto Roundup | May 2025 (Week 5)

31 May 2025
Markets

Your Weekend Crypto Roundup | May 2025 (Week 4)

23 May 2025
Your Weekend Crypto Roundup | May 2025 (Week 3)
Markets

Your Weekend Crypto Roundup | May 2025 (Week 3)

16 May 2025
Your Weekend Crypto Roundup | May 2025 (Week 2)
Markets

Your Weekend Crypto Roundup | May 2025 (Week 2)

9 May 2025

Featured Posts

Assessing The Impact of China’s Crypto Crackdown

byOlajumoke Oyaleke
19 January 2025
0

Why Are We Trying to Make Bitcoin Like Ethereum? (And Why We Should Not)

byOlajumoke Oyalekeand1 others
3 January 2025
0

Global Crypto Taxation Trends: Supporting Growth or Hindering Innovation?

byOlajumoke Oyaleke
31 December 2024
0

The 10 Worst Crypto Mistakes And How To Avoid Them | DeFi Planet

The 10 Worst Crypto Mistakes And How To Avoid Them

byArjun Chand
26 August 2021
1

A Dive Into The Life Of Meme Coin, DogeCoin | DeFi Planet

From Comic Relief to Crypto Sensation: The Epic Evolution of Dogecoin

byRose Nnamdiand1 others
4 August 2021
0

Read More

Chain of Thoughts

Are Stablecoins Bank Deposits?

Are Stablecoins Bank Deposits?

byOlu Omoyele
31 May 2025
0

...

DAOs and the Coordination of Human Endeavour

DAOs and The Coordination of Human Endeavour

byOlu Omoyele
27 April 2025
0

...

Should DeFi Be Regulated?

Should DeFi Be Regulated?

byOlu Omoyele
27 March 2025
0

...

Is Tokenization All That It’s Cracked Up To Be?

Is Tokenization All That It’s Cracked Up To Be?

byOlu Omoyele
26 February 2025
0

...

Markets Update

Your Weekend Crypto Roundup | May 2025 (Week 5)

3 days ago

Your Weekend Crypto Roundup | May 2025 (Week 4)

2 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 3)

3 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 2)

4 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 1)

1 month ago

Your Weekend Crypto Roundup | April 2025 (Week 4)

1 month ago
Read More

Events

Crypto Valley Conference
Crypto Valley Conference
5 Jun 25
Risch-Rotkreuz

Spotlight

All about Ethereum
All about Algorand
All about Bitcoin
All about Gora

Press Releases

Zircuit Joins Binance Alpha: ZRC Airdrop & Trading Competition Go Live

bychainwire
3 June 2025
0

CoinsBee Surpasses 5,000 Gift Card Brands, Becoming the Largest Crypto Gift Card Platform Worldwide

bychainwire
3 June 2025
0

PrimeXBT expands global reach with FSCA-regulated crypto asset services

bychainwire
2 June 2025
0

Zircuit Enables Non-Custodial Wallet Top-Ups for Crypto.com Visa Cards

bychainwire
30 May 2025
0

Bet20 Launches Premium Casino Platform with Trusted Licensing, Instant Crypto Withdrawals, and Elite Gaming

bychainwire
29 May 2025
0

Read More

ADVERTISING

ABOUT

TEAM

CAREERS

CONTACT

TERMS & CONDITIONS

PRIVACY POLICY

© Copyright 2025 DeFi Planet

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer

© Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00