Almost a third of central banks worldwide have postponed their central bank digital currency (CBDC) initiatives due to regulatory uncertainties and shifting economic priorities.
A February 11 report by the Official Monetary and Financial Institutions Forum (OMFIF) and security tech firm Giesecke+Devrient Currency Technology surveyed 34 central banks. While those committed to CBDC adoption continue with their plans, approximately 31% have delayed implementation.
The study attributes these setbacks to regulatory and governance concerns, alongside urgent economic challenges that have taken precedence. It also highlights that legislative progress is influenced not just by a central bank’s technical readiness or policy stance but by political will, which plays a significant role in shaping the timeline.
Notably, in the U.S., opposition intensified after Donald Trump banned digital dollar development in January, a move reinforced by Fed Chair Jerome Powell’s firm stance on February 11, stating that no CBDC would be issued under his leadership. However, some central banks continue pushing forward, citing the need to “preserve monetary sovereignty” as a key motivation.
Some central banks also pointed to economic difficulties and, in one instance, technical challenges as reasons for postponing their CBDC rollout. The report noted that one central bank specifically attributed its delay to rising inflation and debt distress, which have complicated the implementation timeline.
According to OMFIF, technical challenges are no longer a major hurdle for most central banks. In earlier surveys, issues such as offline payments, privacy concerns, and interoperability with existing payment systems were frequently cited as barriers to launching a CBDC. However, one central bank still pointed to privacy concerns as a key reason for delaying its plans, noting that privacy is becoming an increasingly controversial issue due to the growing volume of personal data being collected, stored, and analyzed.
The survey also revealed a decline in the number of central banks leaning toward issuing a CBDC, dropping to 18% from 38% in 2022. In contrast, the proportion of banks less inclined to issue a CBDC rose by 15%, compared to 0% the previous year. Despite this shift, most central banks surveyed still plan to move forward with CBDC issuance.
However, adoption remains low even in countries where CBDCs have officially launched. A recent survey revealed that many consumers are hesitant to transition from traditional payment methods due to privacy concerns, technological difficulties, and a lack of incentives.
Blandina Szalay, a banking and payments analyst at GlobalData, attributes the limited adoption in the Bahamas, Jamaica, the Eastern Caribbean, and Nigeria to the absence of compelling benefits for consumers. Habit and convenience remain key factors, with users expressing frustration over the complexity of CBDCs without clear advantages.
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