CBDC pioneers: Which countries are currently testing a retail central bank digital currency?

Authors: Jonas Weisbrodt, Jonas Gross

Please find an updated analysis here (July 2021).

Central bank digital currencies (CBDC) are currently a hot topic. A study by the Bank for International Settlements (BIS) from January 2020 shows that 80% of worldwide central banks are engaged in CBDC-related research (Boar et al. 2020, p. 3). The percentage of central banks that run experiments or proofs-of-concept is also growing, reaching almost 50%. 10% of the surveyed central banks plan to introduce a generally available (retail) CBDC in the next three years and 20% in the next six years (ibid., p. 7). Therefore, CBDC efforts are very dynamic and are expected to even increase in momentum within the next few years.

This article discusses current CBDC initiatives and explains the motives and the progress of these projects. Our analysis shows that China, Sweden, the Bahamas, the Eastern Caribbean Currency Union, and the Marshall Islands can currently be seen as pioneers in the CBDC space. Note that this article does not focus on the definition and the design principles of a CBDC. If you are interested in details about these aspects, please see Klein, Gross, and Sandner (2020).

Retail CBDC projects in practice