๐ Despite the global race to launch Central Bank Digital Currencies (CBDCs), adoption remains low. Data shows 134 countries, representing 98% of global GDP, are experimenting with CBDCs, but only three have launched. The Federal Reserve Bank of Kansas City reports that three Caribbean retail CBDCs have failed to achieve widespread adoption. In Asia, usage of India's digital rupee has dropped significantly, and China's digital yuan is being immediately swapped for cash. The IMF reports Nigeria's eNaira adoption is "disappointingly low." ๐
Factors affecting adoption include a lack of awareness, privacy concerns, and potential disruption to commercial banks. To gain traction, CBDCs need to offer clear benefits over existing payment methods. Some countries are planning regulations to mandate CBDC use.
What's your take on CBDCs? Share your thoughts in the comments! ๐