Central Bank Digital Currencies (CBDCs)

What you'll learn

• What CBDCs Are and What They Are Not
• CBDCs That Have Launched: Bahamas, Nigeria, Jamaica, Eastern Caribbean
• China's e-CNY: The Most Advanced Major-Economy CBDC
• India's e-Rupee and the EU Digital Euro
• The U.S. Ban on Retail CBDCs Under Trump
• CBDCs, Stablecoins, and Cryptocurrency: A Three-Way Future

Key terms

CBDC

Central Bank Digital Currency. A digital form of sovereign currency issued and controlled by a central bank. 134-137 countries (98 percent of global GDP) are exploring CBDCs per the Atlantic Council CBDC Tracker.

e-CNY (digital yuan)

China's CBDC, the most advanced in any major economy. Approximately 261 million users and RMB 14.2 trillion (about 2 trillion dollars) in cumulative transaction volume by September 2025.

e-Rupee

India's digital rupee CBDC. By March 2026, approximately 5 million users across 13 cities and 10.16 billion rupees (122 million dollars) in transaction value, up 334 percent year over year.

Sand Dollar

The Bahamas CBDC launched in October 2020, the first fully operational retail CBDC. Adoption has been modest.

eNaira

Nigeria's CBDC launched October 2021. Adoption has been very low (under 1 percent of Nigerians) despite government promotion; citizens have preferred Bitcoin and stablecoins.

Trump CBDC ban

Executive order "Strengthening American Leadership in Digital Financial Technology," signed January 23, 2025, banning the establishment, issuance, circulation, and use of a retail CBDC in the United States.

Strategic Bitcoin Reserve

Established by Trump executive order on March 6, 2025. The federal government retains approximately 200,000 BTC from forfeitures rather than auctioning them. The Digital Asset Stockpile additionally includes ETH, XRP, SOL, and ADA.

Programmable money

Digital currency with conditions or rules built in by the issuer, such as expiration dates or category restrictions on spending. China has piloted expiring e-CNY in stimulus programs.