What the numbers say: The data compiled by Finbold has shown that 127 countries took a step into central bank digital currency (CBDC) exploration as of the first half of 2023. The number of countries in advanced exploration phases reached the highest level in the first six-month period of the year, with 64 nations. The study also pointed out that 109 countries are actively exploring CBDCs when canceled and inactive projects are excluded. The countries in the research and development phases represented more than half of all nations exploring digital currencies. What it means: A CBDC is a type of tokenized asset issued and controlled by a country's government or central bank and backed by the local currency. Relevance: The rising interest of the countries in the CBDCs has driven international financial organizations to establish guidelines and new platforms for this asset type. Most recently, the International Monetary Fund (IMF), the major financial agency of the United Nations (UN), announced that it started working on a global CBDC platform to allow CBDC transactions between countries. The agency also previously revealed its plans to release a CBDC handbook to guide countries in developing digital currencies, citing heavy demand. Brands that should care: The increase in the number of countries exploring CBDCs has also caused many brands to jump on the bandwagon over the last several months. In May, Ripple, the payment protocol most famous for its native token XRP, launched a new CBDC platform that central banks, governments, and financial institutions can use to issue their own digital currency. Singaporean crypto-friendly DBS Bank also recently introduced a new payment tool for the digital yuan, or e-CNY, to allow businesses in China to receive payments in the country's CBDC. Also, several giant brands like Microsoft and Visa participated in CBDC pilot projects. |
