Exploring the transformational opportunities and challenges of new sovereign monies.
Central Bank Digital Currencies (CBDCs) and stablecoins have the potential to help digitize entire economies and represent a powerful force for unlocking the Internet of Value.
Today, 130 countries, representing 98% of global GDP,1 are pursuing CBDC projects. Some, including the United States and South Africa, have entered exploratory phases. Many projects throughout the European Union are in development, while China has reached a pilot phase and is nearing full scale launch in mainland areas. The Atlantic Council reports that 19 of the G20 countries are now in advanced
project stages.
Elsewhere, including in Nigeria and the Bahamas, solutions have been launched and use cases continue to evolve. The Bank for International Settlements now predicts that 20% of the world’s population will have access to a CBDC within the next few years.
Considering the benefits of CBDC
In a recent Ripple survey of global finance leaders,4 eighty-five percent (85%) of respondents think that their country will launch a digital currency within the next four years. The majority of leaders cited financial inclusion as a key CBDC benefit; and many of them feel the technology will deliver enhanced national competitiveness (44%), ensure greater efficiencies within payment systems (43%), and advance innovation more broadly (42%).