A recent survey conducted by the Official Monetary and Financial Institutions Forum (OMFIF) and Giesecke+Devrient reveals that while nearly 30% of central banks have postponed their plans for Central Bank Digital Currencies (CBDCs), the majority 75% remain committed to issuing one in the future.
According to the survey, 67% of central banks have not altered their stance on CBDCs despite the delays. However, there is growing hesitation, with 15% of central banks now less inclined to pursue a CBDC, a sharp increase from 0% just two years ago in 2022. This shift reflects the broader uncertainty surrounding digital currencies issued by central banks.
The survey notes a “clear hesitancy” among many central banks, with very few having made definitive decisions to issue a CBDC, despite significant exploratory work on the topic. This reluctance underscores the complexities and challenges involved in rolling out digital currencies at the national level.
Privacy Concerns and Government Oversight
One of the primary concerns surrounding CBDCs is the issue of privacy. Critics warn that digital currencies could enable governments to monitor individual transactions in ways that could infringe on personal freedoms. This pushback against CBDCs intensified following former President Donald Trump’s January 2021 executive order halting the development of a U.S. digital dollar, and more recently, comments by Federal Reserve Chairman Jerome Powell, who reiterated on February 11, 2025, that there would be no CBDC under his leadership.
Despite the concerns, some central banks are pressing forward with CBDC development, motivated by the desire to “preserve central bank monetary sovereignty.” As the report states, CBDCs could offer significant potential in advancing the digital economy, providing a public infrastructure that could lead to innovative financial products and services, while reducing fragmentation in the financial system.
Adoption and Challenges in Emerging Markets
While the idea of CBDCs continues to gain traction, their adoption remains a significant hurdle. Countries like Jamaica, Nigeria, and China have faced challenges in driving user engagement with their digital currencies. The survey found that for 55% of central banks in emerging markets, low user adoption is their biggest concern, with many struggling to entice citizens to use digital currencies.
The global landscape has shifted dramatically since the idea of CBDCs began to take shape. According to a report from the Atlantic Council in September 2024, the number of countries exploring CBDCs has surged from 35 in May 2020 to 134 today. Over 65 countries, including major economies such as India, Australia, and Brazil, are now in the later stages of CBDC development, with some already testing or rolling out their digital currencies. Notably, all G20 nations are now exploring CBDCs, and 19 of them are in advanced stages of implementation.
The Road Ahead
Despite the growing hesitancy and concerns about privacy and adoption, CBDCs continue to be a focal point for central banks worldwide. The coming years will likely see more experimentation and pilot programs, as well as a closer look at how digital currencies can fit into the global financial system. For central banks still pursuing CBDCs, finding ways to address user adoption and ensuring robust privacy protections will be key to ensuring their success in the future.
Wolfram Seidemann, CEO of Giesecke+Devrient Currency Technology, sums up the potential of CBDCs, stating, “CBDCs hold significant potential for advancing the digital economy. By offering a public infrastructure, central banks can pave the way for innovative financial products and services, while reducing fragmentation in the financial system.”
