Nicholi John

The Global Rise of CBDCs

The global landscape of Central Bank Digital Currencies (CBDCs) is evolving rapidly. As nations seek to modernize their payment systems, strengthen financial inclusion, and address technological challenges, several countries and currency unions are actively exploring or developing CBDCs at different stages—ranging from research and concepts to live pilots and fully launches CBDCs. Our comprehensive database provides an overview of Live CBDC projects, categorized by retail and wholesale applications, their distribution model and underlying technology.

Understanding Key aspects of CBDC

Retail CBDCs are designed for use by the general public as a means of payment. They are gaining traction as tools to promote cash-light economies and enhance financial accessibility. In contrast, Wholesale CBDCs are developed for exclusive use by financial institutions with focus on improving efficiency in interbank payments and cross-border settlements, aiming to streamline payment processes and reduce risks within the financial system. CBDCs can operate under either a single-tiered model, where the central bank directly distributes the currency and provides services to users, or a two-tiered model, where distribution occurs via intermediaries such as financial institutions who provide services to the public on behalf of the Central Bank. Moreover, CBDCs may be built on Distributed Ledger Technology (DLT), which uses a shared ledger and cryptography to enhance data transparency and security, or on conventional ledgers, which maintain data records via centralized control typically used in traditional banking systems.

By showcasing this database, we aim to highlight the global effort being made towards the development of CBDCs and cement its status as a growing global phenomenon that will have significant implications for the future of financial infrastructure, both at the domestic and international levels.

‍