HomeNews130 Countries Accounting for 98% of GDP Are Exploring CBDCs - Why...

130 Countries Accounting for 98% of GDP Are Exploring CBDCs – Why This Is a Massive Catalyst for Ripple and the XRP Price in the Long Term

- Advertisement -
  • As of the latest data, 130 countries, representing 98% of global GDP, are in various stages of exploring Central Bank Digital Currencies (CBDCs), a significant rise from 35 countries in May 2020.
  • Among the G20 nations, 19 have reached an advanced stage in CBDC development, with nine countries already pilot testing their digital currencies.

The Tipping Point of CBDCs: From Obscurity to Global Phenomenon

Blockchain technology, the revolutionary backbone of cryptocurrencies like Bitcoin and Ethereum, is now fueling a global fascination with Central Bank Digital Currencies (CBDCs). A recent report from the Atlantic Council indicates that a substantial majority of nations are actively researching, developing, or piloting their own digital versions of sovereign currencies. In total, 130 countries, which cumulatively account for an astounding 98% of the world’s GDP, are currently navigating the CBDC landscape.

The Pace of Progress: G20 Leading the Charge

Among these, the G20 countries appear to be the torchbearers, with 19 nations reaching an advanced stage and nine already pilot-testing their digital currencies. Countries such as Australia, Thailand, and Russia have expressed intentions to continue their pilot testing phase, while emerging economies like India and Brazil aim for CBDC launches by 2024. Brazil has notably selected significant global players like Visa and Microsoft to participate in its pilot program alongside formidable local entities like Nubank, Bradesco, Itaú Unibanco, and the state-run Banco do Brasil.

A Diverse Ecosystem: Stages, Pilots, and Pullbacks

The landscape is diverse, with 78 countries in the research and development phase, 21 countries in pilot testing, and 11 countries having already launched their digital currencies. Interestingly, 16 countries have shelved their plans, remaining inactive, while two have reversed their CBDC initiatives. The status quo in the United States remains comparatively stagnant, with minimal progress in retail CBDCs, thanks in part to political resistance. Vivek Ramaswamy, a presidential candidate for the 2024 U.S. elections, has even labeled CBDCs as a “grave threat” to American liberty.

While the U.S. takes a cautionary stance, corporations like Visa are extending their CBDC expertise to other nations. A recent example involves Visa sharing its CBDC-related insights with the Central Bank of Azerbaijan, fostering an ‘open and constructive debate’ aimed at shaping ‘appropriate formats’ of engagement and cooperation.

The data reflects an irreversible trend, demonstrating that CBDCs are no longer a fringe concept but a significant focus for monetary policy and financial infrastructure globally. Countries are recognizing the transformative potential of blockchain technology in reshaping money, and they are acting on this understanding at an unprecedented scale.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Ralf Klein is a computer engineer specializing in database technology, and as such, he was immediately fascinated by the possibilities of blockchain when he first heard about it, especially since this distributed, tamper-proof technology can be the foundation for much more than just cryptocurrencies. At ETHNews, he translates the articles of his English-speaking colleagues for the German readers. Business Email: info@ethnews.com Phone: +49 160 92211628