Central banks are moving towards issuing their own digital currencies to improve the payment system, given the increase in electronic payments and the decline in the use of cash. Such digital currencies are known as CBDCs. They also aim to mitigate the risk of financial instability arising from the creation of unregulated private electronic payment instruments, such as stablecoins. At present, there is still no specific legislation to regulate the issuance and distribution of CBDCs. However, all countries are working on the development of such regulations. In recent years, different international organizations have issued various recommendations on this type of digital currency, recognizing that their issuance requires international cooperation and coordination. 


Digital currency: regulatory outlook

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Executive summary

The rise in electronic payments, the decline in the use of cash, and the risk of financial instability arising from the creation of unregulated private electronic payment instruments, has prompted the creation of central bank-issued digital currencies, known as CBDCs. Currently, there are no specific regulations governing the issuance and distribution of CBDCs. However, all countries are working on the development of such regulations. Among the most notable initiatives are China´s e-CNY, the eurozone´s digital euro, and the United States’ digital dollar.

Main Content

This Technical Note aims to provide an up-to-date overview of the global regulatory landscape for digital currencies, covering aspects such as the following: 

  • The benefits and risks of CBDCs. Among the benefits associated with the development of CBDCs, we can highlight increased payment efficiency, the protection of monetary sovereignty, improved financial inclusion, and enhanced security. Some of the key risks include the lack of privacy, increased vulnerability for commercial banks, and the potential effects on monetary stability.
  • Current situation and main regulations. Different countries are immersed in processes to issue and regulate their own digital currencies, at different speeds. This technical note summarizes the degree of progress across different regions and will be updated periodically as significant developments occur in CBDC regulation and issuance. Leading jurisdictions such as China, the eurozone, the United States, India and Brazil, are currently shaping the global CBDC landscape.

Download the technical note on the Digital currency: regulatory outlook.