As cryptocurrencies became popular, the world’s central banks realized they could create a similar virtual currency, though centralized(key difference). Why? You might ask. Honestly, to have tighter control of economies and a more “efficient” resource allocation.
Central banks and their favorite think tanks started talking about creating their digital currencies some years ago. From all countries; from east to west, from north to south, from friends to foes. It does seem like central banks worldwide work as a synchronized whole, despite and disregarding the country’s political views.
Russia has announced the launch of a digital ruble by 2024. The USA Fed is to launch FedNow by 2023 which is the base infrastructure for a CBDC. China has launched and operates their digital yuan(CBDC) since 2020. Mexico has announced a CBDC launch by 2024 and the retail version on 2025. Saudi Arabia has a wholesale CBDC operating in pilot mode. India’s digital rupee is also under development for both use cases, wholesale and retail. Brazil has a CBDC in development with its pilot mode about to be launched. I won’t go through all countries but more than 100 countries, including 19 G20 nations, are now exploring central bank digital currencies (CBDCs).
The incentives for the politicians and the technology are there. The discussions and plans have been made. It is only a matter of time for the set up to be ready. So I see most central banks worldwide adopting a CBDC by 2025.