CBDC and the future of money
In an increasingly digitalised world, Central Bank Digital Currencies (CBDCs) are emerging as one of the most significant developments in the evolution of the international monetary system, which will define the future of money and foreign exchange markets. Globally, countries have developed their own CBDCs or are in the process of doing so. At the same time, they are moving forward to create platforms that allow them to be interconnected and facilitate faster cross-border payments, without the need for a third currency to triangulate transactions. This article will analyse the main digital currency projects being developed globally, as well as their uses and the extent to which their development could influence the value and significance of the dollar within the International Financial Architecture (IFA).
The development of digital currencies has expanded rapidly in recent years. While in 2020 there were 35 countries investigating the possibility of their own CBDC, by July 2025 this number had risen to 137 countries, representing 98% of global GDP. Of these, 72 nations are in the advanced exploration phase (development, pilot or launch), with a record 49 projects in the pilot phase. In the same year, three countries fully launched a digital currency: the Bahamas, Jamaica and Nigeria, showing a clear trend towards digitising money. Among the most advanced digital currencies are the yuan and the digital rupee (e-CNY and e-R).
The digital yuan began pilot testing in 2019 and became the largest CBDC experiment globally. By 2026, the system had processed more than 3.4 million transactions (16.7 trillion yuan or £2.4 billion). To accelerate its adoption, the People's Bank of China (PBoC) and the government have implemented the distribution of digital currencies in digital "red envelopes" in government programmes, with the possibility of the balance generating interest.
For its part, the digital rupee began its project in November 2022 with a majority phase and subsequently a retail phase. The value in circulation rose from 234 crore (£27 million) to more than 1,016 crore in March 2025 (£117 million), with 6 million users and 17 banks participating in the pilot programme. India has explored its use in government subsidy transfers, farmer programmes and food distribution through CBDC digital wallets. In addition, has implemented grain or food ATMs, which, thanks to the traceability of digital currencies, reduce corruption and the diversion of funds.
The FED began formal investigations in 2020 for the development of the digital dollar. In January 2025, President Trump banned the development and issuance of a CBDC through an executive order, declaring it a threat to financial stability, individual privacy, and US sovereignty. In March 2026, lawmakers demanded a permanent ban on CBDCs on the grounds that they are contrary to national values and could be used as a tool for institutional surveillance. It is the only country that has banned their development. However, it has promoted the use of stablecoins: cryptocurrencies linked to the dollar or backed by financial assets, issued by private companies or banks. Among these is the USD1, linked to the Trump family. Unlike CBDCs, stablecoins pose a greater risk to the international monetary system, such as the loss of parity with the dollar due to a lack of transparency in their reserves, as well as the ease with which they can be used for money laundering and linked to illegal activities.
The most relevant projects are mBridge and Agorá. The former was launched in 2019 by the central banks of Thailand and Hong Kong, later joined by the central banks of China, the United Arab Emirates and the Bank for International Settlements (BIS). The project consists of creating a platform that allows direct cross-border payments between central banks in CBDC. In January 2026, USD 55 million in cross-border payments were recorded, and the project is now in an advanced pilot phase. The second project was launched in 2024, coordinated by the BIS together with the central banks of France, Japan, South Korea, Mexico, Switzerland and the Federal Reserve Bank of New York (FED), as well as 40 private institutions. The aim is to improve the efficiency of most cross-border payments with CBDC, through a platform with more secure settlements, lower costs and fewer intermediaries. In January 2026, the project passed a trial phase in a real environment.
In 2021, the digital euro was launched by the European Central Bank (ECB). It is mainly aimed at retail payments within the eurozone, with the aim of strengthening its autonomy from foreign payment systems such as Visa or MasterCard. The development and real-world testing phase began in October 2025. Following the political and trade tensions with President Trump, the digital euro process has accelerated. In 2026, the ECB announced that the digital euro could be ready by 2029.
Digital currencies are reshaping the AFI by introducing new payment infrastructures that reduce demand for dollars. In this context, the dollar index is trending downward, showing a decline in demand for dollars relative to other currencies, a phenomenon that accelerated with Trump's arrival in 2025. See Figure 1.
Graph 1. Dollar index 2022-2026
Source: Yahoo Finance
Progress in CBDC projects shows a process of reconfiguration of the AFI. The world is moving towards CBDCs, instruments that seek to strengthen sovereignty, improve efficiency, and even implement them in social programmes. On the other hand, the US is opting for stablecoins, less regulated and riskier instruments that facilitate the illegal economy. This reflects the fragmentation into two models of monetary digitalisation, one based on digital currencies issued and supervised by central banks, and the other supported by assets linked to the dollar and issued by private agents. This divergence is reflected in the current financial system , with a view to a slow but steady process of digitalisation and de-dollarisation.
[1] Intern SECIHTI. IIEc-UNAM.
[2] Dr. Oscar Ugarteche, Dr. José Carlos Díaz, Jennifer Montoya, Carlos Madrid, Jesús Córdoba, Nate Chávez
