Analysing the Global CBDC Landscape Amid US Policy Reversal

President Donald Trump's executive order banning Central Bank Digital Currencies (CBDCs) in the United States while promoting “responsible innovation and financial freedom” has created a significant shift in the global digital currency landscape. 

This policy reversal from the world's largest economy has forced a recalibration of implementation timelines and strategies worldwide, yet hasn't halted international momentum.

The ban comes at a time when CBDCs had been gaining traction globally. 

As Jorge Lesmes, Vice President & Client Partner at NTT DATA, observed in 2024: “with nearly all of the world's central banks now exploring digital currencies, it's the right time to create a global ecosystem where digital currencies can thrive”. 

This sentiment reflected the pre-ban environment, where approximately 90% of central banks were investigating digital versions of their currencies.

Now, with the US stepping back, the question becomes: will other nations follow suit or take the opportunity to establish leadership in digital currency innovation?

Alternative Markets Driving Innovation

Several countries appear committed to their CBDC trajectories despite the US policy shift. Looking back at developments from 2023-2024 provides context for current trajectories.

China has been developing its digital yuan (e-CNY), one of the most advanced CBDC projects globally. Nigeria pioneered its own CBDC with the e-naira, while Switzerland focused on combining technological innovation with robust regulatory frameworks to ensure secure adoption.

More recent developments in 2025 show continued progress. The Bank of Korea is launching a pilot involving 100,000 participants trialling a retail CBDC starting in April. 

Meanwhile, the Bank of England published a digital pound blueprint in January 2025, articulating three long-term aspirations: establishing central bank money as a publicly provided commodity, creating an end-user proposition for retail payments and enabling an open, innovative payments ecosystem.

These ongoing initiatives suggest that rather than following the US ban, many nations see an opportunity to establish leadership in the digital currency space, potentially reshaping financial power dynamics in the coming decade.

Infrastructure Development in a Fragmented Landscape

A critical development that may determine CBDCs' future success is SWIFT's planned launch of a platform connecting different CBDC networks. 

First announced in March 2024, this initiative aims to ensure interoperability between CBDCs built on varying underlying technologies, thereby reducing payment system fragmentation risks.

Nick Kerigan, SWIFT's Managing Director and Head of Innovation, revealed last year that the network's trial involved a 38-member group of central banks, settlement platforms and commercial banks. 

This collaboration represented one of the largest on tokenised assets and positions SWIFT to maintain its role as the leading bank-to-bank network in the digital age – perhaps even more crucial now that global CBDC development lacks US participation.

The platform's implementation timeline of 12-24 months, initially announced in 2024, may now face adjustments given the US policy shift, but the fundamental need for interoperability between disparate CBDC systems remains essential for global adoption.

Consumer Sentiments and Adoption Challenges

The path forward for CBDCs faces challenges beyond the US policy reversal. 

An ECB survey of 19,000 respondents across 11 euro-area countries highlighted substantial reluctance toward adopting a digital euro, with Europeans perceiving limited value in the proposed CBDC.

This aligns with observations from the Bank of England's CBDC Academic Advisory Group, which noted that many central banks have been waiting for a “second mover advantage”, acknowledging that being first to implement could pose higher risks. 

The Group also emphasised that in the UK, the primary motivation for a digital pound focuses more on safe innovation in payments rather than financial inclusion.

The recent OMFIF survey revealed that fewer than one in five central banks are presently inclined to issue a CBDC, down from 38% in 2022. 

This hesitation stems from regulatory concerns, competing economic priorities, and dependence on political will rather than technical capacity—factors likely intensified by the US decision.

A Bifurcated Future

The future of CBDCs now appears to be heading toward a bifurcated global financial system – one where digital central bank currencies play an increasingly important role in some regions while remaining absent in others.

Daniel Field, Global Blockchain Leader at UST, highlighted in 2024 the broader implications: “The ramifications of CBDC in other parts of the business will also, increasingly, come to the fore... 

“Which parts of the system become obsolete because risks are eliminated? What impact does a digital ledger have on contractual relationships? Which businesses will be disrupted and how?”

These questions remain relevant despite the US ban, particularly for nations continuing their CBDC journeys.

The Bank of International Settlements still forecasts 15 retail and 9 wholesale CBDCs in circulation by 2030, while Juniper Research projected that CBDC transaction values could surge to US$213bn annually by 2030 – though these projections may require adjustment given the US position.

As the world adapts to a CBDC landscape without American participation, we may witness an acceleration of digital currency adoption in markets seeking to establish technological and financial sovereignty. 

For global businesses and financial institutions, this bifurcation presents both challenges in navigating disparate systems and opportunities to bridge the widening gap between traditional and digital currency ecosystems.

The ultimate success of CBDCs will depend not only on technological capabilities and regulatory frameworks but also on their ability to deliver tangible benefits that overcome consumer scepticism – a challenge that remains at the heart of the CBDC project, regardless of America's new direction.

To read the full article in the magazine, click HERE.

Explore the latest edition of FinTech Magazine and be part of the conversation at our global conference series, FinTech LIVE. 

Discover all our upcoming events and secure your tickets today.

FinTech Magazine is a BizClik brand