A brand-new currency that solely exists in digital form is called Central Bank Digital Currency (CBDC). To make digital transactions and transfers easier, the central bank creates widely used digital coins rather than issuing money. To introduce and elaborate on the concept of CBDC, Central Banks from across the world have been exploring it. Central Bank Digital Currency traces this innovation’s technological progress and the requirements that led to the decision to develop a new digital currency. The research looks at various technical and economic design options that could be set up for a CBDC, describing the effects and outcomes of these options on our daily lives and payment practices and weighing the benefits against the hazards.

One of the most critical questions is the Countries Developing a Central Bank Digital Currency and how CBDCs might affect the financial and economic system. The overview shows how the CBDC concept might be a game-changer and have the power to alter the foundations of the existing banking system.

List of Countries Developing a Central Bank Digital Currency (CBDC)
These are the Countries Developing a Central Bank Digital Currency (CBDC)

1 .Russia

In October 2017, the Bank of Russia first revealed its intentions to introduce a digital rupee. According to the nation’s central bank, a CBDC would lower the cost of payment services, encourage financial institution competition, offer individuals in regions with limited access to financial infrastructure a convenient way to pay, and lessen Russia’s reliance on the U.S. dollar. The digital rupee will be developed on a hybrid architecture that combines the central Bank of Russia’s control with distributed ledger technology (DLT). Russia intends to make the CBDC accessible offline, in contrast to other nations creating digital currencies.

​​ The Bank of Russia announced a collaboration with 12 banks in June 2021, among them Sberbank, VTB, Gazprombank, and Alfa Bank. Russia declared in December 2021 that a working prototype of the digital rupee had been created, and several test transactions had been completed.

2. Brazil

Since at least 2020, Brazil has been investigating a CDBC following the successful launch of PIX, a system for immediate payments developed by the Brazilian Central Bank (BCB). Over 60% of the adult population are PIX users, and there have been 7 billion transactions conducted. Brazil has the infrastructure to support a digital currency; therefore, the BCB said it would introduce a trial program for the digital real in 2022, with a full release anticipated in 2024.

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