With Donald Trump imposing a ban on developments related to a digital dollar, a recent central bank survey indicates that while 75% still intend to issue a Central Bank Digital Currency (CBDC), nearly one-third have postponed their timelines for issuance.
In response to years of research and efforts by the Federal Reserve, Trump has swiftly taken action against the establishment of a digital dollar, issuing an executive order that prevents government agencies from any actions to create, issue, or promote CBDCs, while also mandating the immediate cessation of any ongoing initiatives.
Amidst this backdrop, tech vendor Giesecke+Devrient and think tank Omfif released a survey involving 34 central banks globally. A significant majority—75%—remain committed to issuing a CBDC, with over half increasing their internal resource allocation for this purpose. The percentage of respondents anticipating a CBDC launch within the next three to five years has risen to 34%, up from 26% in 2023.
However, there are signs of hesitation; 15% of participants expressed a decreased inclination to pursue a CBDC, a notable change from zero percent in 2022. Additionally, 31% have opted to delay their issuance timelines, citing the need for legislative clarity and a broader exploration of payment solutions.
One anonymous respondent indicated a shift in focus away from CBDC research to address other payment issues, while another remarked on the necessity of advancing regulations and market developments before proceeding.
Despite these challenges, significant strides have been made in tackling the technical requirements for CBDC issuance. Offline payments are no longer viewed as a major hurdle, and improving user experience is increasingly prioritized.
The main motivations for central banks vary: emerging market institutions emphasize financial inclusion, while their developed market counterparts focus on maintaining central bank monetary sovereignty.
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