Central bank digital currencies have moved from theoretical exploration to active development in over 100 countries, representing one of the most significant evolutions in monetary systems since the abandonment of the gold standard.
China's digital yuan, now used by hundreds of millions of citizens, provides the most mature example of a retail CBDC, demonstrating both the potential for financial inclusion and the surveillance concerns that critics have raised.
Western central banks have generally taken a more cautious approach, conducting pilot programs and publishing extensive research papers while navigating the complex tradeoffs between innovation, privacy, and financial stability.
The technical design choices being made now, particularly around transaction privacy, programmability, and offline functionality, will have profound implications for the relationship between citizens and their governments for decades to come.
