A new report by OMFIF, in partnership with Giesecke+Devrient, is set to explore the factors contributing to central banks’ hesitation about launching central bank digital currencies (CBDCs). This research highlights the ongoing progress in CBDC development globally, despite some central banks still being undecided about issuance. As more research and experimentation continue, 2025 could see crucial decisions made about the future of CBDCs.
According to OMFIF’s 2024 survey, 81% of central bank respondents have either issued or expect to issue a CBDC at some point, with 47% anticipating issuance within the next five years.
The European Central Bank (ECB) is in the second year of its digital euro preparation phase, with an aim to “bring cash into the digital age” while maintaining the essential features of physical currency: pan-European reach, no cost to users, privacy, offline usability, and ECB issuance. By October 2025, the ECB plans to finalise the scheme rulebook, select service providers, and continue testing technical features.
Meanwhile, the Bank of England is still investigating the technological and policy implications of issuing the digital pound. A final decision could come as early as this year, though privacy concerns remain central to the ongoing discussions. Central banks are also grappling with issues such as setting holding limits for digital currencies—balancing the needs of commercial banks and consumer preferences for usability and convenience.
Several emerging market central banks are making notable progress toward CBDC issuance, with Banco Central do Brasil aiming to launch its blockchain-based digital currency, DREX, in 2025. The Bank of Ghana’s eCedi has completed pilot testing, with the central bank awaiting a decision from the government on its launch.
In the wholesale CBDC space, the Bank for International Settlements has observed a significant uptick in experimentation. The Eurosystem, for instance, has completed exploratory work on interoperability between distributed ledger technology (DLT) systems and existing central bank infrastructure, with efforts from Deutsche Bundesbank, Banca d’Italia, and Banque de France.
In Asia Pacific, the Philippines and Indonesia have already completed proof-of-concept projects, while the Hong Kong Monetary Authority (HKMA) continues to advance its research on tokenisation through Project Ensemble. HKMA has also expanded its work on cross-border payments by experimenting to link Project Ensemble with Brazil’s DREX pilot.
Despite the rise of instant payment systems as the preferred solution for cross-border payments, wholesale CBDCs still have a potential role in enhancing international transactions. As part of Project mBridge, HKMA, alongside central banks from Thailand, UAE, China, and Saudi Arabia, is working to improve the speed, efficiency, and transparency of cross-border payments using a multi-currency CBDC platform.
As the landscape continues to evolve, central banks are making significant strides in the development of CBDCs. The report’s findings suggest that 2025 could be a defining year in determining the trajectory of digital currency issuance across the globe.
