Developing Countries Are Leading CBDC Development: Report
130 countries are undertaking research on the implementation of central bank digital currencies (CBDC), according to CoinGecko and the Atlantic Council CBDC tracker.
Uruguay was the first country to conduct a large-scale CBDC pilot project in 2017. China has taken the lead amongst the G20 countries in researching this area since 2014.
Overall, five out of six developing countries are at the pilot stage and five have already launched CBDCs, while the regulators of eight developed countries are characterized by the penultimate phase.
The discrepancy between developed and developing countries in the implementation of analytics is due to the relatively smaller scale and low complexity of the financial systems of the latter.
Due to its ability to expand access to financial services and modernize the aging infrastructure of the financial market with programmable functions, CBDCs are being developed for the global economy to maintain control of monetary policy and payments as the use of cash declines.
CBDCs allow for cross-border payments, as well as the chance for central banks to maintain their currency status as a global medium of exchange and reserve currency.
