CBDC Adoption Faces Hurdles Despite Global Interest

Despite growing interest in central bank digital currencies (CBDCs), retail adoption remains a challenge due to concerns over interoperability, privacy, and infrastructure, according to a recent survey by GlobalData.

Although CBDCs have officially launched in several countries, including the Bahamas, Jamaica, the Eastern Caribbean Currency Union, and Nigeria, they have yet to gain significant traction among consumers.

“The very limited uptake of CBDC in countries where it fully launched can be attributed to the lack of compelling incentives for consumers to switch to CBDCs from the payment methods they are already used to,”

says Blandina Szalay, banking and payments analyst at GlobalData.

Convenience and Habit Drive Payment Choices

Convenience and habit play a significant role in determining how people choose to pay. CBDCs have yet to offer sufficient benefits to make them a better option. In fact, users in countries with active CBDC programs have complained that the new systems make payments more complicated without providing sufficient benefits.

Technical and Non-Technical Challenges

For central banks, the challenge of achieving widespread adoption is not just technical. Reaching widespread adoption is crucial to achieving the benefits CBDCs are supposed to bring, such as:

  • Improved cross-border payment efficiencies
  • Fostering financial inclusion
  • Newfound financial and monetary stability

Global Interest in CBDCs Continues to Grow

As of September 2024, a total of 134 countries, representing 98% of the global economy, were exploring CBDCs. Over 65 nations, including India, Australia, and Brazil, are in advanced stages of development, piloting, or launching their CBDC projects. All G20 countries are now actively investigating their own digital currencies, with 19 in advanced stages of exploration.

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