What are the key CBDC trends?

This blog post has been written by the person who has mapped the CBDC infrastructure market in a clean and beautiful presentation

Central Bank Digital Currencies (CBDCs) have evolved from experimental concepts to strategic priorities for monetary authorities worldwide.

The landscape is shifting toward dual-track implementation models where retail CBDCs target financial inclusion and domestic efficiency, while wholesale CBDCs focus on cross-border interoperability and tokenized asset settlement.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

What are the long-established CBDC trends that have shaped this space over the past decade?

Four foundational trends established the CBDC landscape between 2013 and 2019, creating the technical and regulatory groundwork for today's implementations.

Retail CBDC exploration for financial inclusion became the primary focus for emerging market central banks seeking to reduce cash dependency and extend banking access to unbanked populations. Most developing economies initiated research programs during this period to understand how digital currencies could serve citizens without traditional banking relationships.

Wholesale CBDC development for interbank settlement emerged as the preferred approach for advanced economies. Central banks in developed markets prioritized digitizing reserves and enabling real-time finality in tokenized asset settlement rather than direct consumer applications. This approach avoided disrupting existing retail banking relationships while modernizing backend infrastructure.

Systematic pilot programs and proofs-of-concept became standard practice, with 80% of central banks conducting collaborative experiments with the BIS Innovation Hub starting in 2017. These initiatives focused on core challenges including security architecture, scalability testing, and legal foundation establishment. The collaborative approach allowed smaller central banks to benefit from shared learnings without duplicating costly research.

Legal and regulatory foundation building addressed the reality that most jurisdictions lacked explicit authority for central banks to issue digital currencies. This prompted comprehensive legal reforms across multiple countries to grant central banks digital currency issuance powers and establish appropriate regulatory frameworks for CBDC operations.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

Which CBDC trends have recently emerged and are gaining early traction?

Four significant trends have emerged since 2020, representing the next evolution in CBDC development with clear commercial applications.

Programmable payments and smart contracts have become core features, with half of all planned CBDCs now incorporating programmable functionality to automate conditional disbursements. This enables applications like automated welfare payments that release funds when specific conditions are met, reducing administrative overhead and improving targeting accuracy.

Cross-border multi-CBDC platforms have progressed from concept to working prototypes. The mBridge project involving China, UAE, Thailand, and Hong Kong reached minimum viable product status in mid-2024, successfully demonstrating sub-second foreign exchange and fund transfers across participating jurisdictions. This represents a significant advancement over traditional correspondent banking networks.

Interoperability bridges connecting different payment systems have moved from theoretical frameworks to practical implementations. Building on World Bank and BIS interoperability experiments, central banks are now piloting bridges that link retail CBDCs, wholesale systems, and existing fast payment networks through standardized APIs and address resolution services.

Offline functionality development has addressed a critical barrier for CBDC adoption in regions with limited connectivity. Several pilots, including Thailand's retail CBDC program, have successfully tested consecutive offline transactions using Near Field Communication (NFC) and Bluetooth Low Energy (BLE) technologies, enabling transactions in rural areas without reliable internet access.

If you want updated data about this market, you can download our latest market pitch deck here

What trends around CBDCs have faded or lost relevance in the past few years?

Three major trends that dominated early CBDC development have diminished in importance as practical implementation challenges became apparent.

Exclusive distributed ledger technology (DLT) architectures have given way to hybrid or centralized ledger systems. Early CBDC designs emphasized blockchain technology for all system components, but performance requirements and governance considerations have led most central banks toward hybrid architectures that combine DLT benefits with centralized system efficiency.

Retail-only pilots in advanced economies have significantly slowed as central banks shifted focus to wholesale and cross-border applications. Pure retail CBDC experiments in Europe and North America faced adoption challenges and regulatory concerns, leading central banks to prioritize wholesale use cases that don't directly compete with existing banking services.

Standalone CBDC wallet applications issued directly by central banks have proven unsuccessful in generating user adoption. Dedicated central bank mobile applications faced low download rates and limited merchant acceptance, prompting a strategic shift toward enabling private sector wallets to integrate CBDC payment rails while central banks focus on backend infrastructure.

Which CBDC developments appear to be hype-driven rather than sustainable?

Several high-profile CBDC initiatives have demonstrated characteristics of hype-driven development rather than sustainable implementation strategies.

Sudden announcements of nationwide retail launches without comprehensive merchant onboarding plans have consistently resulted in poor adoption rates. Early examples like initial Sand Dollar rollouts in the Bahamas lacked sufficient merchant infrastructure and consumer education programs, leading to limited real-world usage despite technical functionality.

Blanket mandates requiring adoption of non-interest-bearing retail CBDCs have generated significant legal and political pushback in jurisdictions with established banking systems. These top-down approaches have faced resistance from both financial institutions and consumers, particularly in countries with existing efficient payment systems.

In contrast, sustainable developments have aligned with established international frameworks and industry collaboration patterns. Interoperability frameworks following BIS G20 Roadmap recommendations have gained traction because they address real cross-border payment inefficiencies. Programmable payment platforms developed through central bank-fintech partnerships have shown commercial viability because they solve specific operational challenges. Wholesale pilots targeting tokenized assets with real-value settlement tests have demonstrated clear value propositions for institutional users.

Which trends are currently gaining the most momentum in the CBDC space?

Three specific trends are experiencing accelerated development and investment as of July 2025, representing the highest-priority areas for central banks worldwide.

Wholesale CBDC issuance readiness has become the dominant focus, with several major central banks targeting actual issuance within the next 3-6 years rather than indefinite pilot phases. This shift reflects growing confidence in wholesale use cases and clearer regulatory pathways compared to retail implementations. Central banks are prioritizing wholesale systems because they can modernize critical infrastructure without disrupting consumer banking relationships.

Cross-border CBDC corridors through multi-CBDC bridge platforms are expanding rapidly beyond initial pilot participants. The mBridge platform's success has prompted additional central banks to explore participation, while parallel projects like the expanded Project Aber are developing alternative corridor implementations. These initiatives address genuine inefficiencies in cross-border payments that affect both institutional and retail users.

Programmable payment functionality has evolved from experimental feature to core differentiator for CBDC utility in both public and private sector applications. Central banks are recognizing that programmability enables use cases that justify CBDC development costs, including automated government disbursements, conditional business payments, and supply chain finance applications.

Looking for the latest market trends? We break them down in sharp, digestible presentations you can skim or share.

What specific startups or new ventures are working on each of these trends?

The CBDC startup ecosystem has matured significantly, with specialized companies emerging across key technology and infrastructure segments.

If you want to grasp this market fast, you can download our latest market pitch deck here

Which problems or pain points in global financial systems are these CBDC initiatives aiming to solve?

CBDC initiatives target four fundamental inefficiencies in current global financial infrastructure that create measurable costs for businesses and consumers.

Financial inclusion challenges affect approximately 1.4 billion adults globally who lack access to basic banking services. CBDCs can serve unbanked and underbanked populations through offline functionality and low-cost digital payment rails that don't require traditional banking relationships. This addresses both geographic barriers in rural areas and economic barriers for low-income populations.

Payment efficiency limitations in both domestic and cross-border contexts create significant friction for businesses and consumers. Current systems often require multiple intermediaries, settlement delays, and high transaction costs. CBDCs enable instant settlement and 24/7 real-time gross settlement enhancements that can reduce transaction times from days to seconds while lowering costs.

Monetary sovereignty concerns have intensified as private stablecoins gain adoption, potentially undermining central bank control over domestic monetary policy. CBDCs provide a digital alternative that maintains central bank authority over currency issuance while offering the convenience and programmability that users seek from digital payment methods.

Operational resilience vulnerabilities in payment systems create single points of failure that can disrupt economic activity. By diversifying payment infrastructure beyond private sector networks, CBDCs can reduce systemic risk and provide alternative payment channels during network outages or cybersecurity incidents affecting traditional payment providers.

How are different regions or countries approaching CBDC adoption and experimentation today?

Regional approaches to CBDC development reflect distinct priorities based on existing financial infrastructure maturity and specific economic challenges.

What key technological enablers are supporting the latest CBDC innovations?

Five technological foundations are enabling the current wave of CBDC implementations, representing significant advances over early experimental systems.

Hybrid distributed and centralized ledger architectures combine the transparency and resilience benefits of DLT with the performance and governance advantages of centralized systems. This approach allows central banks to maintain operational control while leveraging blockchain technology for specific functions like audit trails and multi-party verification.

Smart contract platforms specifically designed for programmable payments enable conditional workflows and automated compliance checking. These platforms support complex business logic while maintaining the security and reliability standards required for monetary infrastructure. They enable use cases ranging from automated tax collection to supply chain finance.

API-first interoperability layers facilitate seamless connections between retail CBDCs, fast payment systems, and legacy real-time gross settlement networks. These standardized interfaces allow private sector payment service providers to integrate CBDC functionality without rebuilding existing systems, accelerating adoption and reducing implementation costs.

Offline payment channels using Near Field Communication and Bluetooth Low Energy technologies address connectivity limitations in rural and underserved areas. These technologies enable consecutive offline transactions that can be synchronized when connectivity is restored, ensuring CBDC accessibility regardless of network infrastructure availability.

Modular software development kits and frameworks enable central banks to onboard private sector payment service providers rapidly and securely. These tools provide standardized integration points while maintaining appropriate security controls and regulatory compliance requirements.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

If you want fresh and clear data on this market, you can download our latest market pitch deck here

What regulatory shifts or frameworks are influencing CBDC deployment globally?

Four major regulatory developments are shaping how central banks approach CBDC implementation and creating clearer pathways for private sector participation.

The REDI Framework (Regulation, Education, Design, Incentives) has become the standard approach for guiding CBDC adoption strategies across multiple jurisdictions. This framework ensures that regulatory clarity precedes technical implementation, reducing uncertainty for both central banks and private sector participants. The framework emphasizes stakeholder education and appropriate incentive structures for adoption.

BIS G20 Roadmap Actions 2 and 3 focusing on cross-border CBDC interoperability standards are establishing technical specifications that enable seamless international transactions. These standards define common protocols for address resolution, settlement finality, and compliance reporting across different CBDC systems, creating the foundation for global interoperability.

Legal clarifications granting central banks explicit digital currency issuance powers have addressed fundamental authority questions that previously created uncertainty about CBDC legality. These legislative updates also establish clear Anti-Money Laundering and Counter-Financing of Terrorism mandates for CBDC operations, providing regulatory certainty for financial institutions.

Privacy versus data utility balancing requirements are being embedded in both regulatory frameworks and technical system designs. Regulators are establishing specific standards for data protection while ensuring that CBDCs provide sufficient transaction visibility for compliance and monetary policy purposes. This balance is crucial for gaining public acceptance while maintaining regulatory oversight capabilities.

What major developments or inflection points should be expected by 2026?

Four critical milestones will significantly shape the CBDC landscape over the next eighteen months, creating clearer market opportunities for new entrants.

Digital Euro preparation phase conclusion is scheduled for late 2025, including comprehensive rulebook finalization and payment service provider selection processes. This represents the most significant retail CBDC initiative in an advanced economy and will establish precedents for regulatory frameworks, technical standards, and public-private partnerships that other central banks will likely follow.

First wholesale CBDC issuances in Asia and Latin America are expected to move from pilot to operational status post-2025. Projects including Brazil's digital real and potential tokenized peso implementations will demonstrate wholesale CBDC viability for tokenized asset settlement and interbank transfers, providing concrete examples of business model viability.

Multi-CBDC bridge platforms will transition from pilot to production minimum viable products, expanding significantly beyond current mBridge founding members. This expansion will create the first operational cross-border CBDC payment corridors, enabling real-world testing of international digital currency settlement and establishing technical standards for global interoperability.

Regulatory framework finalization in major economies including the European Union, United States, and United Kingdom will clarify legal and compliance regimes for CBDC operations. These frameworks will establish clear rules for private sector participation, data handling requirements, and operational standards that enable broader ecosystem development.

How is the CBDC landscape likely to evolve over the next five years and where are the biggest opportunities for new entrants?

By 2030, approximately 15 retail and 9 wholesale CBDCs are projected to be in public circulation, coexisting with enhanced fast payment systems rather than replacing existing infrastructure.

The biggest market opportunities for new entrants center on five critical infrastructure gaps that central banks cannot address directly. Interoperability middleware connecting diverse CBDC systems with existing payment rails represents a multi-billion dollar market opportunity as central banks require seamless integration without disrupting current banking relationships.

Programmable payment engines serving both public sector disbursement and private sector business-to-business workflows will create significant value as organizations seek to automate complex payment processes. This technology enables use cases ranging from automated tax collection to supply chain finance that justify CBDC implementation costs.

Compliance and privacy tooling that leverages CBDC transaction data while maintaining strong data governance standards addresses a critical need as regulators require enhanced visibility without compromising user privacy. Solutions that enable regulatory reporting while protecting personal financial information will be essential for public acceptance.

Offline and Internet-of-Things enabled payment solutions for underserved populations and machine-to-machine transactions represent emerging markets as CBDC systems expand beyond traditional banking use cases. These solutions address connectivity challenges while enabling new autonomous payment scenarios.

Cross-border foreign exchange and liquidity management services built on multi-CBDC settlement networks will emerge as international corridors become operational. These services will compete with traditional correspondent banking by offering faster settlement and lower costs for international transfers.

Curious about how money is made in this sector? Explore the most profitable business models in our sleek decks.

Conclusion

Sources

1. Central Bank of Nigeria - Digital Currencies Emerging Trends
2. Bank for International Settlements - CBDC Papers No. 136
3. European Blockchain Observatory - CBDC Trend Report
4. Central Banking - Programmable CBDCs
5. BIS Innovation Hub - mBridge Project
6. World Bank - CBDC Interoperability Technical Perspective
7. Bank of Thailand - Retail CBDC Conclusion Report
8. International Monetary Fund - CBDC Analysis 2024
9. Bank for International Settlements - Papers No. 147
10. Ledger Insights - Accenture EMTECH Investment
11. Quick Market Pitch - CBDC Infrastructure Funding
12. Bank for International Settlements - Papers No. 123
13. International Banker - Global CBDC Trends
14. International Monetary Fund - Policy Paper 2024
15. Bank for International Settlements - Other Publications 52
16. Bank for International Settlements - Legal Framework
17. Atlantic Council - CBDC Evolution 2023
18. Atlantic Council - CBDC Tracker