CBDC Momentum Stalls as Central Banks Rethink Priorities

Economic Factors

Economic factors have also played a significant role. One surveyed central bank attributed its delay to rising inflation and national debt concerns, forcing a shift in priorities. Others reported scaling back CBDC research to focus on broader payment infrastructure needs.

Privacy and Public Trust Remain Key Challenges

While technical hurdles like offline functionality and system interoperability were once considered major barriers, most central banks no longer view them as significant obstacles. However, privacy concerns continue to stir debate.

Despite these challenges, the broader trajectory of CBDC adoption remains uncertain. The survey found that the percentage of central banks expressing greater interest in issuing a CBDC has dropped to 18%, a sharp decline from 38% in 2022. Meanwhile, the share of central banks less inclined to pursue CBDCs has risen by 15%, compared to none in 2022.

However, concerns about government overreach, corruption risks, and financial surveillance remain major deterrents.