Global Central Banks Abandon CBDC Plans as Stablecoins Dominate
For years, scholars and policymakers debated the feasibility of digital currencies, but today, 146 countries representing 98% of global GDP are exploring or developing central bank digital currencies (CBDCs).
The emergence of privately issued stablecoins has also transformed the architecture of global payments. Stablecoin transaction volume surged to over $27.6 trillion in 2024, surpassing Visa and Mastercard combined.
China's digital yuan is the most advanced CBDC deployment among major economies, with programmable payment functionality already in operation. Brazil's Drex initiative has stepped back from a blockchain-based architecture due to privacy and scalability concerns.
India's experience with its retail e-rupee pilot reveals a fundamental design challenge for CBDCs: they must offer something meaningfully different to justify adoption, especially where real-time payment infrastructure already exists.