105 countries are investigating central bank digital currencies around the world in 2022, but the majority of nations are still conducting research.
Digital currencies are being used by central banks all around the world, but some are more advanced than others.
This map illustrates the progress of each central bank’s digital currency initiative using data from the Atlantic Council’s Currency Tracker.
Digital Currency – The Basics
Although digital currencies have existed since the 1980s, they didn’t achieve widespread acceptance until the 2009 debut of Bitcoin. Thousands of digital currencies, often known as “cryptocurrencies,” are in use today.
The fact that cryptocurrencies are built on a blockchain record is one of their distinguishing qualities. Although blockchains can be either centralised or decentralised, the most well-known cryptocurrencies of today (such as Bitcoin, Ethereum, and others) are often decentralised. As a result, it is particularly challenging to track down transactions and payments as no one entity has complete control.
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On the other hand, a central bank will have authority over and be able to readily trace government-issued digital currencies. They would be issued digitally and have no physical form, but they would have the same value as the local hard currency.
Central Bank Digital Currencies Worldwide
Presently, 105 countries are investigating centralised digital currencies. They account for 95% of the global GDP collectively.
When taken as a whole, we can observe that the majority of nations are still conducting research.
We’ve also divided the map by region to make viewing easier.
What are the Benefits?
Government-issued digital currencies have the ability to increase access for those who lack bank accounts.
In industrialised nations like the U.S., this is not a major problem, but many individuals in poor countries lack access to banks and other financial institutions (hence the term underbanked). Digital currencies are a sensible answer as the number of internet users rises.
Visit this article from Global Finance, which covers the nations with the lowest levels of banking in 2021, for more information on this subject.
Only 9% of nations have so far introduced a digital currency.
This includes Nigeria, which did so in October 2021 to become the first African nation. 200 million people, or 50 percent of the population, are thought to not have access to bank accounts.
The eNaira’s (the naira’s digital version) adoption has been quite slow thus far. As of April 2022, the eNaira app had received 700,000 downloads. Though not all downloads are from Nigerian users, that equates to 0.35 percent of the population.
Contrarily, despite efforts by the Central Bank of Nigeria to impose restrictions on usage, 33.4 million Nigerians were believed to be trading or owning crypto assets.
Status in the U.S.
The Federal Reserve, the country’s central bank, has not determined whether to launch a central bank digital currency (CBDC).
Our key focus is on whether and how a CBDC could improve on an already safe and efficient U.S. domestic payments system.
– FEDERAL RESERVE