Central Banks Show Waning Interest in CBDCs, Researchers Find

The proportion of central banks reporting diminished interest in issuing national digital currencies (CBDCs) has risen from zero in 2022 to 15%, according to findings by OMFIF.

The study also revealed a decline in the number of central banks eager to issue CBDCs — from 38% to 18%.

The sample comprised responses from 34 regulators, with fintech firm Giesecke+Devrient partnering in the research.

Among those surveyed, 31% of central bank representatives have postponed the issuance of digital currencies, 10% — have accelerated it, while 59% — maintain their original timelines.

Most central banks anticipate project implementation within the next decade.

Main Challenges

The primary reasons for delays are “concerns about the regulatory framework and governance system.” Respondents also mentioned “exploring a broader range of solutions.”

“The formation of legislation partly depends on political will, not the capabilities of regulators,” the report states.

Other reasons for delay include economic and technical issues, which researchers note are no longer significant obstacles for most central banks.

In previous surveys, central banks cited challenges such as offline payments, privacy, and compatibility with existing payment systems.

Currently, analysts noted that privacy is “an increasingly contentious issue given the vast amounts of personal data being collected, stored, and analyzed.”

Over the past year, interoperability, user experience, and scalability have become more complex challenges.

OMFIF believes this reflects progress in addressing more substantial issues related to the creation of digital currencies. Without improvements in key technical areas, central banks would unlikely have advanced to a stage where these aspects gain prominence.

Back in January, U.S. President Donald Trump signed an order mandating the ban on the issuance and promotion of CBDCs in the country. Agencies are required to cease all related programs and initiatives.

Later, European Central Bank board member ECB Piero Cipollone expressed concern about the Trump administration’s active promotion of stablecoin-related initiatives. The official noted that work on the digital euro is “on schedule.”