Recently, news about the launch of central bank digital currencies (CBDCs) has become less frequent due to regulatory disagreements and changing economic priorities.
Delays in CBDC Launch
A recent report by the Official Monetary and Financial Institutions Forum (OMFIF) and Giesecke+Devrient Currency Technology notes that approximately 31% of banks delayed their CBDC launches due to growing concerns and uncertainties regarding e-currencies.
Changing Stance on Cryptocurrencies
Experts note that after Donald Trump's victory in the 47th presidential election in the U.S., the stance towards cryptocurrencies has changed. The ban on CBDC issuance in the U.S., along with economic pressures, has also contributed to slowing down their adoption.
Failed CBDC Projects and Their Causes
Some major CBDC projects, such as E-Naira and e-Peso, failed to receive anticipated recognition. The centralized nature of these currencies makes it difficult for them to compete with decentralized solutions.
The evolving attitude towards cryptocurrencies and the rapid advancement in blockchain technology can significantly impact the development of central bank digital currencies. A strategy that addresses risks and fosters innovation effectively might help accelerate their introduction.
