CBDCs Are Under Threat — Here’s Why
Connor Sephton is a journalist based in London, who also works for Sky News and the BBC as a radio newsreader and online reporter. He has covered crypto since 2018 — reporting from major conferences...
Elena is the Features Lead at Cryptonews.com. With a Master's degree in science journalism from City University, London, she is passionate about exploring complex topics in the world of technology.
Key takeaways:
The world of central bank digital currencies is in disarray right now.
Just three CBDCs have officially launched worldwide, while another 44 are in the pilot stage.
That’s according to the Atlantic Council, which has long tracked their evolution globally.
Those that have made their debut have often faced disappointing levels of adoption — primarily because consumers are stuck in old habits and reluctant to make a change.
Over in The Bahamas, just 1% of currency in circulation is denominated in “The Sand Dollar,” the name given to its CBDC.
As a result, regulations are being pushed through that will force banks in the region to offer this digital asset to their customers.
There hasn’t been much success in Nigeria either, with uptake of the eNaira largely linked to cash shortages that caused widespread protests in major cities.
And over in Jamaica, there was an embarrassing development when the CEO of National Commercial Bank — the only financial institution that offers JAM-DEX — said usage of this CBDC had been “low” and caused friction compared with existing methods.
Other central banks are now openly questioning whether consumers have much demand for retail CBDCs, with both Australia and Canada abandoning plans to launch one. Meanwhile, the Federal Reserve remains in a state of paralysis in its deliberations on whether to
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