Global CBDC Development: First Movers & Progress
When it comes to the pace of development, emerging economies are moving faster on CBDCs compared to advanced economies.
According to the Atlantic Council CBDC Tracker, there are currently 11 economies with a launched or piloted CBDC which include the Bahamas, Jamaica, Nigeria, Anguilla, and the Eastern Caribbean Currency Union (ECCU), all of which are classed as emerging. In contrast, only 8 advanced economies have piloted CBDCs to date, none of which are in the pilot stage.
Emerging countries like the Bahamas and Nigeria launched CBDCs to expand financial inclusion and digitalize their economies. Their relatively smaller scale and less complex financial systems allow quicker adoption, although Nigeria’s eNaira has seen a relatively low usage, estimated at 6% of its population as of March 2023, and may relaunch its CBDC after a redesign.
Larger advanced economies are taking a more cautious approach due to concerns around disruptive impacts on the banking system and monetary policy. Countries like the US and UK are therefore studying CBDCs extensively before any pilot.
As evidenced by the ECCU, CBDC adoption is not limited to single countries – other CBDC projects between countries or regions include the Stella project by the European Central Bank, the Fed and the Bank of England, Project Jura between France and Switzerland, and Project Icebreaker between Israel, Norway, and Sweden.
