2023 Expects to Be a Significant Year for Central Bank Digital Currency

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2023 is a major year for Central Bank Digital Currency (CBDC) exploration, as the number of countries in the advanced stages of CBDC development has risen to 65.

This is reflected by the growing number of central banks launching their pilots, with 18 countries chosen to adopt their CBDCs in 2023—including some major economies like Australia, Brazil, Canada, China, India, Japan, Jordan, Kazakhstan, Laos, Montenegro, Philippines, Russia Saudi Arabia, Turkey United Arab Emirates, Ukraine, UK, and the US.

Not only are central banks exploring the potential of digital currencies, but countries worldwide have also begun to join forces to research trustworthy and secure ways to use them. One hundred nineteen countries, or more than 95 per cent of the global economy, are implementing their CBDC.

Financial institutions employ a wholesale CBDC for bank-to-bank transfers and settlements. To promote effective cross-border transfers between international financial institutions, for instance, wholesale CBDCs have been employed; they lower costs, increase speed and reliability, and do away with intermediaries.

“Central banks are rolling up their sleeves and familiarising themselves with the bits and bytes of digital money,” said Kristalina Georgieva, Atlantic Council IMF Managing Director.

“All told, around 100 countries are exploring CBDCs at one level or another. Some researching, some testing, and a few already distributing CBDC to the public.”

Additionally, several countries have established CBDCs on wholesale and retail levels, including Australia, China, and India. By creating this hybrid infrastructure, central banks might enable the use of CBDC for retail consumer payments and to settle transactions between financial institutions.

Meanwhile, consumers can purchase products and services through a retail CBDC.

As governments and central banks continue to implement effective, robust, and inclusive digital solutions, the GeoEconomics Center will keep tabs on CBDC exploration around the globe. 

As more countries continue to explore this exciting technology, 2023 will be an unforgettable year for CBDCs.

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