<p class="is-style-lead">Pallavi Thakur, Director of Strategy and Innovation at Swift, and Ryan Rugg from Citi shared insights at Money20/20 from their recent collaborative CBDC experiment.</p> 
<p>Both Thakur and Rugg cited the rapid progress of the global adoption of central bank digital currencies (<a href="https://crypto.news/tag/cbdc/" target="_blank" data-type="link" data-id="https://crypto.news/tag/cbdc/" rel="">CBDCs</a>). However, they underscored the pressing need for <a href="https://crypto.news/back-to-the-drawing-board-rethinking-interoperability-opinion/" target="_blank" data-type="link" data-id="https://crypto.news/back-to-the-drawing-board-rethinking-interoperability-opinion/" rel="">interoperability</a> among different systems, a challenge that demands immediate attention.</p> 
<p>“It’s like the early days of the Internet. You have all these various intranets developing,” Rugg said. “What’s going to be the connectivity between all of it?”</p> 
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<h2 class="wp-block-heading" id="adoption-of-cbdcs">Adoption of CBDCs</h2> 
<p>The adoption of CBDCs is gaining momentum globally as central banks explore CBDCs to improve payment systems, ensure financial stability, and promote economic growth. CBDCs are digital versions of traditional <a href="https://crypto.news/tag/fiat/" target="_blank" data-type="link" data-id="https://crypto.news/tag/fiat/" rel="">fiat</a> currencies controlled by central banks. Unlike cryptocurrencies, CBDCs have a stable value tied to their nation’s currency, supported by monetary policies and regulations.</p> 
<p>Governments worldwide are considering CBDCs, with 134 countries exploring the idea and 36 countries piloting initiatives. However, digital currency presents challenges such as susceptibility to fraud, glitches, and transaction errors.</p> 
<p>“When you talk about 36 countries, imagine 36 bilateral connections, it’s not going to scale, right? So these numbers are great but also present challenges,” Thakur said. “If I, as a consumer, want to send payment from my digital account to somebody in India, which needs to be in a digital rupee, it should be absolutely seamless,” Thakur said.&nbsp;</p> 
<h2 class="wp-block-heading" id="market-utility">Market utility&nbsp;</h2> 
<p>When they first emerged, CBDCs were largely siloed as niche experiments or limited to early-stage pilot programs. Today, they have <a href="https://crypto.news/swift-to-connect-multiple-cbdcs-in-one-platform-by-2026/" target="_blank" data-type="link" data-id="https://crypto.news/swift-to-connect-multiple-cbdcs-in-one-platform-by-2026/" rel="">become far more global and common</a>, with widespread adoption among banks and retailers, reflecting a significant shift in the financial landscape towards digital currencies.&nbsp;</p> 
<p>Citing this adoption, Rugg emphasized the need for utility and unity among all financial institutions working with CBDCs and the necessity for seamless transactions across different digital currencies.</p> 
<p>“It has to be a market utility where there’s not one entity that controls it,” Rugg said.&nbsp;</p>

Money20/20: Global adoption of CBDCs is growing, but interoperability presents challenges

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