G7 economies move into development stage of CBDCs
G7 economies and over 20 additional countries are in development stages for CBDCs, according to the Atlantic Council.
As of December 2022, all G7 economies had moved into the development stage of a central bank digital currency, according to the Atlantic Council (AC).
The AC found that — despite slow development progression — “11 countries have fully launched a digital currency.”
China’s CBDC pilot is set to expand to most of the country in 2023 — currently reaching 260 million people, according to the AC.
Geared towards improving cross-border payments, mitigating financial crime, increasing financial inclusion and addressing risks posed by other forms of digital currency — CBDC establishment is already being rolled out by:
- The Bank of England
- Federal Reserve Bank of New York
- Monetary Authority of Singapore
- Central banks in Spain and Switzerland
With roughly a dozen CBDCs launched so far, a further 17 are in currently in the pilot phase — alongside 72 in the research and development phase, according to a tracker from the AC.
Despite speculation and interest in recent years, the AC key findings report that over 20 countries “will take significant steps towards piloting a CBDC” in 2023. These countries include:
- South Korea
This pivot towards CBDCs was recently evidenced by the Indian central bank governor on Dec. 21, 2022 — despite calling for a ban on crypto — stating that the country should adopt CBDCs to reduce the need to print fiat currencies.