134 nations now investigating central bank digital currencies

A report by the Atlantic Council has revealed that 134 countries, representing 98% of global GDP, are now exploring the development of central bank digital currencies (CBDCs). 

Of these nations, 66 have advanced to pilot or development stages, highlighting the global push toward digital currencies. 

Every G20 nation is involved in CBDC efforts, with notable advancements seen in China and European nations, while the U.S. continues to lag behind Europe and Japan in terms of CBDC development. 

According to the report, "Our new research shows that 134 countries are now exploring a CBDC, representing 98% of global GDP." 

This expansion is driven by the potential of CBDCs to improve financial inclusion, streamline payment systems, and enhance cross-border transactions. 

Among G20 countries, 19 have progressed to the advanced stages of development. 

Countries like Japan, India, and South Korea are leading the way with their ongoing CBDC pilots, while nations such as France and Italy have introduced new projects. 

The research also highlighted that there are currently 44 CBDC pilots worldwide, with European countries at the forefront of testing initiatives. 

China’s e-CNY remains the largest CBDC pilot globally, having processed over 7 trillion yuan in transactions across various sectors, including education and tourism. 

Several countries have already fully launched their digital currencies. 

The Bahamas, Jamaica, and Nigeria have issued CBDCs, with increased issuance seen in Nigeria and the Bahamas. 

While the Federal Reserve is participating in cross-border initiatives like Project Agorá, which involves six major central banks, the U.S. remains behind its peers in Europe and Japan in the race to develop a fully operational CBDC.