Central bank digital currencies (CBDC) are on the rise across the globe as 134 countries and currency unions explore the financial technology innovation. This is a rise from just 35 countries in 2020.

The figure, which represents 98% of the global GDP, is from new findings from US-based Atlantic Council, which tracked the growth of these regulated, state-backed digital currencies and the progress in its adoption.

CBDCs are digital currencies that are issued to central banks. Like cryptocurrencies, the currency is entirely digital, but unlike the more volatile crypto, the value of CBDCs are tied to the central banks of a country and are equivalent to that country’s local currency.

Countries are turning to CBDC as cash is continually dethroned, and the threat of unregulated cryptocurrencies looms.

Currently, 66 countries are in the advanced phase of the CBDC exploration, which includes the development, pilot, or launch of a digital currency.

Every country that has an advanced retail CBDC project intermediates their currency, meaning that they are distributed through banks, financial institutions, and payment service providers.

According to the research, every G20 country is exploring a CBDC, with 19 of them in advanced stages. Of those, 13 countries are already in the pilot stage of their journey, including Brazil, Japan, India, Australia, Russia, and Turkey.

Just three countries – the Bahamas, Jamaica, and Nigeria, have fully launched a CBDC, with Nigeria and the Bahamas seeing issuance increase substantially.

Right now, 44 pilots exploring the rollout of the cash alternative are currently ongoing, including the digital euro being rolled out in the EU.

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In the UK, CBDC is currently in the development stage, with the newly elected Labour Party expressing its support of the Bank of England’s work on developing a CBDC.

There are also a number of cross-border wholesale CBDC projects, which often aim to create a unified, programmable infrastructure for the trading of different nation’s digital currencies.

Since Russia’s invasion of Ukraine, the number of cross-boarder projects have doubled, with more than 13 of them currently in existence.

All original BRICS member states – Brazil, Russia, India, China, and South Africa, are piloting a CBDC, as they continue to promote alternative payment systems to the dollar.