G7 economies move into development stage of CBDCs

As of December 2022, all G7 economies had moved into the development stage of a central bank digital currency, according to the Atlantic Council (AC).

The AC found that — despite slow development progression — “11 countries have fully launched a digital currency.”

China’s CBDC pilot is set to expand to most of the country in 2023 — currently reaching 260 million people, according to the AC.

Geared towards improving cross-border payments, mitigating financial crime, increasing financial inclusion and addressing risks posed by other forms of digital currency — CBDC establishment is already being rolled out by:

• The Bank of England
• Federal Reserve Bank of New York
• Monetary Authority of Singapore
• Central banks in Spain and Switzerland

With roughly a dozen CBDCs launched so far, a further 17 are in currently in the pilot phase — alongside 72 in the research and development phase, according to a tracker from the AC.

Despite speculation and interest in recent years, the AC key findings report that over 20 countries “will take significant steps towards piloting a CBDC” in 2023. These countries include:

• Australia
• Thailand
• Brazil
• India
• South Korea
• Russia

This pivot towards CBDCs was recently evidenced by the Indian central bank governor on Dec. 21, 2022 — despite calling for a ban on crypto — stating that the country should adopt CBDCs to reduce the need to print fiat currencies.