Global Surge in Digital Currencies: A Comprehensive Overview

A recent report from the Atlantic Council reveals that 134 countries, representing 98% of the global economy, are now exploring digital versions of their currencies. Notably, China, the Bahamas, and Nigeria are seeing significant uptakes in usage. Major advances include the European Central Bank's digital euro pilot and the U.S. joining a cross-border CBDC project.

A recent report published by the U.S.-based Atlantic Council think-tank highlights that 134 countries, covering 98% of the global economy, are now exploring digital versions of their currencies. Nearly half of these countries are in advanced stages, with China, the Bahamas, and Nigeria already experiencing notable increases in usage.

The study disclosed that all G20 nations are investigating central bank digital currencies (CBDCs). Currently, 44 countries are piloting these digital currencies, a rise from 36 a year ago. This global movement strives to address declining cash usage and the challenges posed by cryptocurrencies and major technology firms.

According to the Atlantic Council's Josh Lipsky and Ananya Kumar, the Bahamas, Jamaica, and Nigeria have seen considerable progress with their CBDCs, while China's prototype e-CNY has nearly quadrupled in transactions to 7 trillion yuan ($987 billion). Europe and the United States have also made significant strides, though the U.S. remains cautious amid privacy concerns and legislative barriers. The fastest-growing project, mBridge, connects CBDCs from several countries and is scheduled for further expansion this year.

(With inputs from agencies.)