The Official Monetary and Financial Institutions Forum (OMFIF) and Giesecke + Devrient (G+D) published a survey revealing that around 30% of central banks have confirmed delaying their Central Bank Digital Currency (CBDC) projects.

Despite these delays, 67% of global central banks still plan to introduce CBDCs.

This hesitancy mainly stems from concerns over legislation and exploring a wide range of solutions. Privacy issues have been highlighted, as critics caution that CBDCs could enable more stringent government monitoring of transactions.

Quote: “The central bank would not have access to user data. We have no interest in it and would not use it for commercial purposes.” - Alexandra Hachmeister, Director General of the Digital Euro.

According to the survey results, central banks’ intentions to issue a CBDC have been stable since 2023 at 74%. Furthermore, the percentage of developing or developed nations expecting to launch a CBDC in the next 3-5 years has risen from 26% to 34%.

CBDC Adoption Challenges

56% of central banks in emerging markets report issues regarding CBDC adoption. Countries like Jamaica, China, and Nigeria have faced difficulties in adopting their digital currencies. Fabio Araujo stated, “Low adoption as a problem is even more concerning, that is why we’re engaging the market from the beginning to help mature the platform.”

The report indicates a significant shift, with central banks now focusing not on the existence of CBDCs, but on their targeted development and deployment. Various notable motivations include preserving the monetary sovereignty of central banks and ensuring financial inclusivity.

As central banks like G+D strive to improve the digital economy, they can promote innovative financial solutions and minimize risks of fragmentation in the financial system.