CBDC Central Bank Digital Currencies mbridge

China's digital yuan, e-CNY, remains the largest global CBDC pilot, with transactions nearly quadrupling by June 2024. Last updated:

September 17, 2024 02:25 EDT

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

September 17, 2024 02:25 EDT

Why Trust Cryptonews With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews The Atlantic Council’s latest report shows that 134 countries, representing 98% of the global economy, are now exploring central bank digital currencies (CBDCs), up from 35 in 2020.

Additionally, 66 nations have advanced their efforts. Meanwhile, the Bahamas, Jamaica, and Nigeria have already launched CBDCs and are expanding the reach of their retail versions within their countries.

Moreover, 44 countries — including Australia, Indonesia, Singapore and Malaysia — are running CBDC pilot programs. That’s up from 36 last year. This growth reflects global efforts to address declining cash use and challenges from cryptocurrencies like Bitcoin.

China’s Digital Yuan Leads Global Digital Currency Efforts

All original BRICS nations—Brazil, Russia, India, China, and South Africa—are also testing CBDCs. Since last year, BRICS has pushed for an alternative payment to the dollar.

China’s digital yuan, the e-CNY, remains the largest CBDC pilot globally. By June 2024, its transaction volume reached $986b across 17 regions, impacting sectors like education, healthcare, and tourism. This marks a nearly fourfold increase from the $253b reported in June 2023, according to the think tank.

Project mBridge Expands, US Joins Agorá Initiative

Meanwhile, after Russia’s invasion of Ukraine and G7 sanctions, cross-border wholesale CBDC projects more than doubled to 13. Among them, Project mBridge stands out, connecting financial institutions in China, Thailand, the UAE, Hong Kong and Saudi Arabia, with plans for further expansion this year.

The US has also joined Project Agorá, a cross-border wholesale CBDC initiative with six other major central banks. In May, the US House passed a bill banning the direct issuance of a retail CBDC, but it is still awaiting Senate action. CBDCs remain an issue in the ongoing US presidential campaign.

Earlier this year, the World Economic Forum reported that over 98% of central banks worldwide are involved in CBDC research, pilot programs, or rollouts to enhance access to central bank money.

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