What's the latest news on CBDCs?

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Central Bank Digital Currencies have moved from experimental concepts to concrete implementations across multiple continents. By mid-2025, CBDC development shows clear winners and losers, with China's e-CNY leading retail adoption at 180 million wallets and cross-border projects like mBridge proving wholesale viability with over $22 million in real transactions.

The regulatory landscape has crystallized dramatically, with the US effectively banning Fed-issued CBDCs while the EU pushes toward digital euro implementation by October 2025.

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What are the top three CBDC pilot programs currently active in 2025, and what results have they published?

China's e-CNY leads global CBDC pilots with 180 million wallets and cumulative transactions exceeding RMB 100 billion by mid-2024.

The e-CNY pilot spans 26 regions across 17 provinces, integrating QR code payments, payroll systems, and public transport. Transaction volumes demonstrate real-world utility beyond experimental phases, with the People's Bank of China targeting 260 million users by 2026. The system supports both online and offline functionality, addressing connectivity challenges in rural areas.

India's Digital Rupee (e₹-R) shows strong institutional backing with 600,000 users across 17 participating banks and circulation reaching ₹10.16 billion by March 2025. The pilot focuses on person-to-person and person-to-merchant payments, with specific applications in government-to-person subsidies and programmable money features for targeted disbursements to farmers and carbon credit programs.

Ghana's e-Cedi pilot, though concluded in Q2 2022, provides valuable performance data with 2,750 users generating GHS 473 million in transaction value across 96,000 transactions. The pilot tested urban (Accra), peri-urban (Tarkwa), and offline rural (Sefwi Asafo) scenarios, with offline transactions representing 0.475% of total volume, indicating limited but measurable demand for connectivity-independent payments.

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Which countries have officially launched CBDCs as of mid-2025, and what adoption metrics are available?

Three countries have moved beyond pilot phases to full national CBDC launches, each demonstrating different adoption trajectories and use case priorities.

Nigeria's eNaira, launched in October 2021, reports the strongest adoption metrics with approximately 13 million wallets representing 6% of the population. However, the CBDC represents only 0.36% of total currency in circulation as of March 2024, indicating limited transaction frequency despite widespread wallet creation. The Central Bank of Nigeria continues promoting eNaira for financial inclusion and reducing cash dependency costs.

The Bahamas' Sand Dollar, the world's first nationally deployed CBDC since October 2020, focuses on inter-island remittances and financial inclusion across the archipelago's scattered population. While the Central Bank of the Bahamas hasn't released detailed adoption statistics, the Sand Dollar addresses specific geographic challenges of traditional banking infrastructure in remote islands.

Jamaica's JAM-DEX, operational since March 2022, reports concrete cost savings of approximately $7 million annually on cash handling and processing. However, consumer adoption remains below initial projections, with the Bank of Jamaica emphasizing infrastructure development over aggressive user acquisition in the near term.

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How is the private sector participating in CBDC infrastructure and services in 2025?

Private sector engagement in CBDC development has intensified significantly, with over 70 entities participating in the European Central Bank's digital euro innovation platform alone.

Technology providers like ConsenSys, Fireblocks, and Chainalysis offer middleware solutions connecting CBDC ledgers to existing blockchain infrastructure. These companies provide essential services including on-chain KYC/AML compliance, smart contract auditing, and programmability modules that enable advanced features like conditional payments and automated escrow functions.

Commercial banks serve as primary intermediaries in most CBDC models, distributing digital currencies to retail users through existing banking apps and infrastructure. Thailand's Bank of Thailand pilot demonstrates this approach with six financial service providers offering CBDC integration through their digital platforms. Indian banks participating in the e₹-R pilot include both traditional institutions and fintech wallet providers, expanding distribution channels beyond conventional banking.

Stablecoin and payment infrastructure companies are positioning themselves as cross-border settlement facilitators, offering interoperability between CBDC rails and existing digital asset networks. Circle and Paxos have raised over $500 million in 2025 funding rounds specifically targeting CBDC integration capabilities, indicating significant investor confidence in public-private collaboration models.

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What regulatory frameworks are being developed in major markets to govern CBDCs over the next 12-24 months?

Regulatory approaches to CBDC governance show stark divergence among major economies, with the United States implementing prohibition while the European Union accelerates implementation timelines.

What are the main use cases being tested with CBDCs in 2025, and which are gaining traction?

CBDC use case development has concentrated on three primary areas: retail payments, cross-border settlement, and programmable money applications, with wholesale models demonstrating stronger institutional adoption than retail implementations.

Retail payment applications dominate pilot programs, focusing on person-to-person and person-to-merchant transactions through QR code integration and digital wallet functionality. China's e-CNY enables seamless integration with existing payment ecosystems including Alipay and WeChat Pay, while India's e₹-R targets financial inclusion through simplified account opening procedures and reduced transaction costs.

Cross-border settlement represents the most commercially viable near-term application, with the mBridge platform connecting Hong Kong, China, UAE, and Thailand demonstrating over $22 million in real transaction volumes. This multi-CBDC approach reduces settlement times from days to seconds while eliminating correspondent banking fees, particularly attractive for trade finance and remittance corridors between participating economies.

Programmable money features show significant potential for government disbursements and conditional payments. India's e₹-R pilots include carbon credit generation controls that automatically release payments to farmers upon verified environmental milestones. Brazil's DREX incorporates smart contract functionality for securities settlement, enabling automated escrow and delivery-versus-payment mechanisms in capital markets.

Offline functionality remains limited but strategically important, with Ghana's pilot showing 0.475% of transactions occurring without internet connectivity. This capability addresses rural and disaster scenarios where traditional payment infrastructure fails, though technical complexity limits widespread implementation.

What technological models are being used, and which show better performance or adoption?

CBDC implementations divide primarily between wholesale and retail models, with wholesale systems demonstrating superior institutional adoption while retail models face user experience and privacy challenges.

Wholesale CBDCs, restricted to regulated financial institutions, show significantly higher transaction volumes and settlement efficiency. The UAE, China, and Thailand's institutional pilots integrate with existing Real-Time Gross Settlement systems using distributed ledger platforms like Hyperledger Besu. These implementations achieve faster settlement times and higher throughput compared to retail alternatives, making them attractive for institutional adoption.

Retail CBDC models face scalability and user adoption hurdles despite broader accessibility. Token-based systems, adopted by China (hardware and software wallets), India (e₹-R), and Ghana (eCedi), enable offline functionality and higher privacy control compared to account-based alternatives. However, consumer adoption remains significantly lower than wholesale usage, with most retail pilots reporting adoption rates below 10% of target populations.

Account-based models, explored by the ECB and Bank of England, require Know Your Customer verification on the central bank ledger but cannot operate offline. These systems offer better regulatory compliance and transaction monitoring capabilities but sacrifice the privacy and accessibility benefits that make CBDCs attractive to consumers.

Technical performance metrics favor wholesale implementations, with institutional systems processing thousands of transactions per second compared to hundreds for retail systems. Privacy-enhancing technologies like zero-knowledge proofs, implemented in Brazil's DREX, add computational overhead but address consumer surveillance concerns that limit retail adoption.

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What is the current position of major central banks on launching CBDCs, and what milestones are expected by 2026?

Central bank positions on CBDC implementation vary dramatically, with the Federal Reserve explicitly opposing development while the European Central Bank accelerates toward operational deployment.

The Federal Reserve, under Chair Jerome Powell's leadership, has committed to avoiding CBDC development during his tenure, citing FedNow's instant payment capabilities as sufficient for domestic payment modernization. This position aligns with the Trump administration's January 2025 Executive Order prohibiting Fed-issued digital currency development, effectively removing the United States from global CBDC competition.

The European Central Bank targets digital euro rulebook completion and service provider selection by October 2025, with implementation decisions following thereafter. ECB President Christine Lagarde has emphasized the need for legislative urgency to maintain European monetary sovereignty and payment system independence from non-EU providers.

The People's Bank of China continues expanding e-CNY pilot programs with ambitious targets of 260 million users by 2026 and national coverage across all provinces. Cross-border initiatives including Project mBridge with UAE, Thailand, Hong Kong, and Saudi Arabia demonstrate China's strategy to establish yuan-denominated settlement alternatives to dollar-based systems.

The Reserve Bank of India maintains active e₹-R development with parliamentary amendments to the RBI Act enabling broader implementation authority. Pilot expansion continues across additional banks and use cases, though specific timeline commitments remain subject to legislative approval.

The Bank of England continues design principle consultation with implementation decisions expected by late 2025, while the Bank of Canada maintains contingency preparations without firm deployment timelines.

What are the most promising startups and infrastructure providers enabling CBDC experiments, and have any secured funding in 2025?

CBDC infrastructure development has attracted significant private investment, with established technology providers and specialized startups competing for central bank partnerships and commercial opportunities.

Giesecke+Devrient (G+D) serves as the primary technology partner for Ghana's eCedi pilot and collaborates with the Official Monetary and Financial Institutions Forum (OMFIF) on offline CBDC solution development. The company's focus on secure hardware and offline functionality addresses critical infrastructure gaps in emerging markets where internet connectivity remains inconsistent.

ConsenSys and Fireblocks provide smart contract middleware enabling programmable CBDC features including conditional payments, automated escrow, and compliance monitoring. These platforms integrate CBDC ledgers with existing blockchain infrastructure, facilitating interoperability between central bank systems and private digital asset networks.

Circle and Paxos, established stablecoin issuers, have raised over $500 million in 2025 funding rounds specifically targeting CBDC integration capabilities. These companies position themselves as bridges between central bank digital currencies and existing stablecoin infrastructure, enabling cross-border settlement and liquidity provision services.

Specialized CBDC infrastructure startups focus on privacy-enhancing technologies, wallet development, and compliance tools. While specific funding amounts remain confidential, venture capital interest in CBDC-adjacent technologies has increased significantly, particularly for companies offering zero-knowledge proof implementations and multi-CBDC interoperability solutions.

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What are the primary concerns being raised about CBDCs, and how are policymakers addressing them?

CBDC implementation faces three primary concern categories: privacy and surveillance, financial stability risks, and technological complexity, with policymakers developing specific mitigation strategies for each challenge.

Privacy and surveillance concerns dominate public discourse, particularly regarding government monitoring of individual transactions and potential for social control. China's "managed anonymity" model attempts to balance regulatory compliance with user privacy through transaction limits and pseudonymization, while the European Central Bank designs pseudonymity schemes for small-value transactions. Brazil and India pilot privacy-enhancing technologies including zero-knowledge proofs before broader population deployment.

Financial stability risks center on potential bank disintermediation if consumers migrate deposits to CBDC accounts, potentially disrupting traditional lending mechanisms. Policymakers address these concerns through holding limits (the digital euro targets approximately €3,000 caps) and two-tier distribution models that maintain commercial banks as intermediaries rather than allowing direct central bank account relationships.

Technological complexity and operational risks include system downtime, cybersecurity vulnerabilities, and cross-border interoperability challenges. Central banks mitigate these risks through extensive pilot testing, gradual rollout phases, and partnerships with established technology providers rather than developing proprietary systems independently.

Public acceptance remains limited, with surveys indicating consumer preference for cash and existing digital payment methods over CBDCs. Educational campaigns and use case demonstrations target specific pain points like cross-border remittances and financial inclusion rather than attempting broad consumer adoption immediately.

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How are CBDCs impacting or expected to impact stablecoin and crypto markets in the next 1-3 years?

CBDC development is creating both competitive pressure and collaboration opportunities for stablecoin and cryptocurrency markets, with outcomes varying significantly by jurisdiction and implementation model.

Complementarity scenarios emerge where stablecoins handle cross-border settlement and CBDC rails ensure domestic compliance, particularly in jurisdictions maintaining both systems. Increased regulatory clarity accelerates institutional stablecoin adoption as banks and corporations gain confidence in compliant digital asset usage, while CBDC infrastructure provides settlement rails for stablecoin redemption and issuance processes.

Competitive displacement risks affect private stablecoin growth, particularly for domestic payment use cases where CBDCs offer similar functionality with central bank backing. However, stablecoins maintain advantages in programmability, cross-border accessibility, and integration with decentralized finance protocols that CBDCs cannot easily replicate due to regulatory constraints.

The United States' CBDC prohibition creates opportunities for private stablecoin expansion, with regulatory focus shifting toward stablecoin framework development rather than central bank digital currency competition. This approach may accelerate US dollar-denominated stablecoin adoption globally while other economies develop CBDC alternatives.

Infrastructure convergence between CBDC and cryptocurrency systems enables interoperability solutions, with companies like Circle and Paxos positioning themselves as bridges between central bank systems and existing digital asset networks. This convergence creates new business models in liquidity provision, custody services, and compliance tooling that serve both CBDC and cryptocurrency markets simultaneously.

What kinds of partnerships are forming between governments, banks, and tech companies for CBDC implementation?

CBDC implementation relies heavily on public-private partnerships, with successful models emerging around multi-stakeholder innovation platforms and cross-border collaboration initiatives.

• Multi-CBDC platforms: Projects like Inthanon-LionRock and mBridge demonstrate cross-border settlement efficiency among central banks and commercial banks in Asia-Pacific and Middle East regions, with real transaction volumes exceeding $22 million proving commercial viability.
• Innovation ecosystems: The ECB's digital euro innovation platform engages approximately 70 private partners including banks, fintechs, and technology providers for front-end development and use case testing, creating comprehensive testing environments before full deployment.
• Regulatory sandboxes: India's Digital Shekel Challenge, Israel's CBDC experimentation, and Brazil's LIFT Lab enable controlled testing of CBDC features including smart contracts, programmable payments, and privacy-enhancing technologies without full regulatory compliance requirements.
• Technology provider partnerships: Central banks partner with established technology companies rather than developing proprietary systems, with examples including Ghana's collaboration with Giesecke+Devrient and Thailand's integration with multiple financial service providers.
• Cross-jurisdictional cooperation: Project Ensemble facilitates multi-currency settlement between different CBDC systems, while bilateral agreements between countries like China-UAE and China-Thailand enable direct CBDC exchange mechanisms.

What are the most likely CBDC business opportunities for entrepreneurs and investors between now and 2030?

CBDC market development creates multiple entrepreneurial opportunities across infrastructure, compliance, and application layers, with the highest value potential in B2B services rather than consumer-facing applications.

Infrastructure-as-a-Service represents the largest opportunity category, including CBDC ledger hosting, node operation services, and technical integration support for central banks lacking internal development capabilities. Smaller economies particularly require turnkey solutions that can be customized for local regulatory requirements without extensive technical development investments.

Compliance and privacy tools address critical policy requirements across all CBDC implementations, including zero-knowledge proof frameworks, on-chain KYC/AML modules, holding limit enforcement engines, and transaction monitoring systems. These solutions must adapt to varying regulatory requirements across jurisdictions while maintaining technical compatibility with multiple CBDC platforms.

User-facing applications focus on multi-wallet solutions supporting CBDC and stablecoin interoperability rather than single-currency implementations. Programmable payment applications targeting government-to-person and business-to-business use cases offer higher value than consumer payment apps, particularly for conditional transfers, supply chain finance, and automated compliance reporting.

Cross-border remittance platforms leveraging multi-CBDC rails can reduce costs and settlement times compared to traditional correspondent banking, particularly attractive for emerging market corridors where existing solutions remain expensive and slow. These platforms require partnerships with multiple central banks and compliance with varying regulatory frameworks.

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Conclusion

Sources

1. International Banker - Recent Global Trends in CBDC Development
2. Dig Watch - India Explores New Digital Rupee Features
3. Economic Times - E-Rupee Circulation Growth
4. LinkedIn - Ghana's CBDC Piloting Report
5. CBDC Tracker - Ghana Currency Status
6. World Economic Forum - What Are Central Bank Digital Currencies
7. Deutsche Bank - Wholesale CBDC Projects
8. Vocal Media - CBDC Synergy with Private Stablecoin Development
9. European Central Bank - Digital Euro Innovation Platform
10. Bank of Thailand - Pilot CBDC 2024
11. White House - Strengthening American Leadership in Digital Financial Technology
12. O'Melveny - Trump Executive Order on Digital Assets
13. European Parliament - Digital Euro Legislative Train
14. Reuters - ECB's Lagarde Urges EU Lawmakers
15. Bank for International Settlements - CBDC Paper
16. Vidhi Legal Policy - Setting the Stage for Digital Rupee
17. FinTech News - BIS Central Banks Complete Cross-Border CBDC Pilot
18. Ledger Insights - DREX Privacy
19. QuestDB - Wholesale CBDC vs Retail CBDC
20. Central Banking - Wholesale CBDC Work
21. IMF - CBDC Research Paper
22. Reserve Bank of India - Digital Rupee FAQs
23. IMF - Account-Based vs Token-Based CBDCs