Currently, 134 countries, representing 98% of the global economy, are exploring digital currencies, with nearly half in advanced stages, according to a report released by the Atlantic Council.
Nearly half of these nations are at an advanced stage, with pioneers like China, the Bahamas, and Nigeria experiencing increased usage, the report said. Moreover, 44 countries are already piloting central bank digital currencies (CBDC), eight more than the year before.
This surge was attributed to a global effort to address declining cash usage and the competitive threat from cryptocurrencies like Bitcoin and major tech firms.
The Bahamas, Jamaica, and Nigeria are the only three countries with fully launched CBDCs. China, which is running the world’s largest pilot scheme, reported that usage of its prototype e-CNY has nearly quadrupled to 7 trillion yuan ($987 billion) in transactions.
Other notable advancements include the European Central Bank’s multi-year digital euro-pilot and the United States joining a cross-border CBDC project with six other major central banks.
In May, the U.S. House of Representatives passed a bill prohibiting the direct issuance of a ‘retail’ CBDC for public use. This remains a contentious issue in the presidential election campaign between Donald Trump and Kamala Harris.
The fastest-growing project, codenamed mBridge, connects CBDCs from China, Thailand, the UAE, Hong Kong, and Saudi Arabia, with plans to expand further this year.
