The Evolution of CBDC in G20 Economies Design, Progress and Strategy

Abstract

This paper aims to provide a comprehensive examination of the rapidly evolving landscape of Central Bank Digital Currencies (CBDCs) within G20 economies. It seeks to differentiate the primary use cases of retail, wholesale, and cross-country CBDCs across the four development stages: research-, development-, pilot- and live-stage. The research reveals that, except for Argentina, all G20 economies are in advanced research or proof-of-concept stages, each with unique motivations and design considerations. Also, eastern nations, notably China, India, and Russia are progressing toward the imminent launch of retail CBDCs. In contrast, predominant western economies like the USA, UK and Eurozone remain in exploratory phases, preparing for a potential future launch should CBDC integration become necessary. Also, it can be concluded that CBDC is seen as an addition to cash and not as a replacement in all portrayed economies. Furthermore, most countries are undecided regarding the underlying technology, but are certain to distribute CBDCs via intermediaries and not directly via the Central Bank to avoid disintermediation. Noticeably, most G20 economies are involved in one of twelve international projects for cross-country CBDCs which are currently underway.