As central bank digital currencies (CBDCs) continue to be a hot topic in global finance, nearly a third of central banks have decided to delay their CBDC plans due to regulatory concerns and shifting economic priorities.
A recent survey conducted by the Official Monetary and Financial Institutions Forum (OMFIF) and security technology firm, Giesecke+Devrient Currency Technology, published on February 11 2025 analyzed the stance of 34 central banks. While many are proceeding with their CBDC projects, approximately 31% have opted to postpone implementation.
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Key Reasons for Delays
The report attributes these delays to two primary factors:
- Regulatory and Governance Challenges: Many central banks are struggling with the legal and governance frameworks required to roll out a CBDC.
- Economic Uncertainty: Some central banks are prioritizing more pressing economic concerns over CBDC development, particularly in light of inflation spikes and national debt distress.
“Establishing legislation is also partially dependent on political will, rather than the central bank’s technical capacity or decision on policy,” the report noted.
A notable development in the CBDC space came from the United States, where President Donald Trump signed an executive order on January 23 2025 prohibiting the establishment, issuance, and circulation of a CBDC. While many in the crypto community welcomed this decision, some industry leaders worry about its impact on global CBDC adoption.
Despite these challenges, most central banks still foresee the introduction of a CBDC within the next decade. However, the survey revealed a decline in enthusiasm, with only 18% of central banks now inclined to issue a CBDC, compared to 38% in 2022. Meanwhile, the number of banks opposed to CBDCs increased by 15%, a stark shift from 0% in 2022.
While past surveys highlighted technological barriers – such as offline payment functionality, privacy concerns, and interoperability – these are no longer seen as major obstacles. Instead, privacy issues remain a focal point for some banks, with concerns about the vast amounts of personal data collected through CBDCs.
The Human Rights Foundation, which launched a CBDC tracker in November 2023, outlines both the potential benefits and drawbacks of digital currencies. While CBDCs could enhance payment efficiency and expand financial inclusion, critics argue that they may infringe on privacy and open doors for government overreach and corruption.
Despite the hesitations and shifting policies, the overall trajectory for CBDCs remains positive, with most central banks still exploring their potential. However, regulatory clarity and economic stability will play a crucial role in determining how and when these digital currencies become a reality.
As the debate over CBDCs continues, the crypto community will be watching closely to see how these developments impact the broader financial landscape.
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