Examples of CBDC
Here are some examples of wholesale projects that are ranked based on project maturity. These projects are headed by:
- Thailand and Hong Kong: Project Inthanon-LionRock
- Singapore: Project Ubin
- Canada: Project Jasper
- UK: Cross-border interbank payment and settlements
- France: Digital Euro
- South Africa: Project Khokha
- Europe: Project Stella
- UAE: Project Aber
- Japan: Project Stella
On the other hand, below are retail projects headed by:
- The Bahamas: Project Sand Dollar
- Cambodia: Project Bakong
- Mainland China: e-CNY
- Ukraine: e-Hryvnia
- Uruguay: e-Peso
- Ecuador: Dinero Electronico
- Eastern Caribbean: DCash
- Sweden: e-Krona
- South Korea: e-Won
- Turkey: Digital Lira
Let’s check the below brief examples of CBDC projects:
The Sand Dollar of the Bahamas
The Sand Dollar project began in the late 1990s, and the CBDC, a digital counterpart of the Bahamian dollar, was unveiled in October 2020. The Sand Dollar initiative aims to overcome the issue of the Bahamas’ 700-plus islands making ATM systems impossible to operate. However, adoption remains low, with approximately $130,000 in sand dollars in circulation compared to $500 million in Bahamian dollars.
E-Rupee
India launched its own CBDC on December 1, 2022. This is the first phase of a pilot project that will cover select locations and banks in a closed user group (CUG) comprising participating customers and merchants, the RBI has said. The pilot will initially cover the four cities of Mumbai, New Delhi, Bengaluru, and Bhubaneswar, where customers and merchants will be able to use the digital rupee (e₹-R), or e-rupee.
What is Central Bank Digital Currency (CBDC): How Does It Work?
CBDC, or Central Bank Digital Currency, has been in development for some time now. The main reason why private cryptocurrencies have gained popularity is due to the fact that they seek to replace centralized financial institutions with decentralized ones. So, what exactly is CBDC?