Countries are launching digital currencies as if it were the Olympics of the future. Already 13are experimenting with CBDCs, accounting for nearly 98% of global GDP. China and Nigeria got there first, but the results are diametrically opposed.

Central bank digital currencies (CBDCs) are perhaps the most significant change in the monetary system since the abolition of the gold standard in 1971. While the dollar was no longer “pegged” to gold, now countries are seriously considering making money completely digital.

As of 2025, 137 countries are working on CBDC , accounting for almost 98% of global GDP. Some are limiting themselves to research, others are launching pilots, and China and Nigeria have already conducted the first large-scale experiments. And they are all in a hurry, because the digital transaction market is expected to grow to $213 billion by 2030 .

But why are governments so actively harnessing the race for digital currencies?
Let's try to figure it out.

What are CBDCs and why are they needed?

CBDC is a digital form of national currency issued and controlled by a government. Unlike Bitcoin or Ethereum, which are not owned by anyone and are not subject to central control, the digital yuan or digital naira is legal tender .

They usually use blockchain technology to operate, and are distributed through a two-tier system:

the central bank issues "coins"

Commercial banks and fintech companies are engaged in their distribution.

In theory, CBDCs allow for instant payments 24/7, smart contracts, and more flexible finance. In practice, these are just the first steps. Most countries are limiting themselves to pilots, tests, and local experiments.

Why do countries need digital currencies?

There are several reasons, and they are all strategic.

Maintaining control over the economy.
If people switch en masse to stablecoins or Bitcoin, central banks will have fewer tools to regulate the money supply. CBDC gives them back the levers of control.

Modernization of payment systems.
Traditional banking settlements are slow, expensive, and not always reliable. By 2027, the volume of cross-border transfers will exceed $250 billion, and old technologies will have a hard time coping with such loads. CBDCs make transactions cheaper and faster.

Geopolitics.
The dollar remains the world's reserve currency, but China has already made it clear with e-CNY: "We are not going to wait." For the US and Europe, this is a direct challenge: if the yuan strengthens, the balance of power in global trade will change.

The answer to the rise of cryptocurrencies.
States understand that it is useless to ban crypto. But you can offer “your own” digital currency, which will combine the convenience of blockchain with a state guarantee.

Financial inclusion.
Today, 1.7 billion people in the world do not have access to banking services. CBDCs can give them the opportunity to store and transfer money directly, without bank accounts. This is especially important for developing countries.

China and Nigeria: First Cases

e-CNY (China).
China began testing the digital yuan back in 2020. Today, it has more than 261 million wallets , and the total transaction volume has exceeded $7.3 billion. e-CNY is accepted in public transport, and it was the official means of payment at the 2022 Olympics. But mass adoption is slower than expected — the Chinese are used to using WeChat Pay and Alipay.

eNaira (Nigeria).
In 2021, Nigeria became the first African country to launch its own CBDC. The goals were ambitious: reduce costs, make payments more accessible, and strengthen the economy. But three years later, the numbers speak for themselves: 98.5% of wallets remain inactive . People don’t trust the system, and banks are in no hurry to support it.

The conclusion is clear: launching a CBDC technically is one thing, but convincing people to use it is quite another.

Problems on the way

While CBDCs seem like the “future of money,” there are serious barriers:

Scalability. The network needs to be able to handle millions of transactions per second without lag. Technology is not up to the task yet.

Infrastructure. CBDCs must work alongside traditional cards and banking services, otherwise users will not accept them.

Legislation. Regulators cannot keep up with the speed of technological change. Each innovation requires new rules.

Citizens' concerns. People are afraid that the state will get an "all-seeing eye" and complete control over finances. These fears are quite real: CBDCs allow every transaction to be recorded.

Cyber ​​threats. The more digital the money, the higher the risks. Hackers, criminal groups, and hostile states see CBDCs as a juicy target.

What's next?

CBDCs will remain experimental for the next 5-10 years. Most countries will be engaged in research and pilots, but mass implementation is unlikely to occur before 2027-2028.

The main problem is not so much the technology, but the trust of users . The Chinese yuan works — but people continue to pay through familiar apps. The Nigerian naira is available — but almost no one uses it.

However, the world has already entered the “digital currency race.” And no one wants to fall behind.

It is safe to say that just as gold once gave way to paper money, cash will gradually be replaced by central bank digital currencies. The only question is which country will be the first to find a balance between control, convenience, and trust.


By Miles Harrington 
September 04, 2025

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