Karla Barker 
The Global Push for Digital Currencies
It’s happening faster than many expected. More than 130 countries are now actively working on central bank digital currencies, covering nearly all of global economic output. What began as experimental pilots has turned into what feels like a global race to digitize national money systems.
Countries like China with its e-CNY, Nigeria’s eNaira, and the Bahamas’ Sand Dollar are already out in front. The Atlantic Council’s tracking shows 49 active pilots underway, which suggests we’re moving from theory to practice. The timeline seems to be pointing toward 2025-2028 as the period when many of these projects might actually launch.
I think the motivation here is pretty clear – governments want faster payment systems, better financial inclusion, and honestly, they want to maintain control as money goes digital. It’s a natural response to the rise of cryptocurrencies, but it’s also driven by practical needs.
Two Different Philosophies Collide
At first glance, CBDCs and cryptocurrencies might seem similar – both are digital, both use some form of blockchain technology. But the underlying philosophies couldn’t be more different.
CBDCs are centralized, state-backed, and designed for stability. They’re essentially digital versions of existing fiat currencies. Cryptocurrencies, on the other hand, were built around decentralization and permissionless access. The whole point was to create systems that weren’t controlled by any single entity.
Some experts suggest there might be room for both. The thinking goes that as people become more comfortable with digital wallets and blockchain payments through CBDCs, they might become more open to exploring Bitcoin or DeFi platforms. It’s an interesting theory, though I’m not entirely convinced it will play out that way.
Privacy and Control Concerns
Many in the crypto community are understandably worried. While clearer regulations could bring some legitimacy to the space, CBDCs might also push regulators toward stricter KYC and AML requirements. This could mean trading privacy for convenience.
The Bank for International Settlements published research in 2025 showing that positive central bank sentiment toward CBDCs tends to correlate with negative impacts on cryptocurrency market returns. That’s not exactly surprising, but it’s worth noting.
Community sentiment reflects these concerns too. In recent Reddit discussions, most users expressed negative views about CBDCs, primarily over privacy issues and fears of government surveillance. One user put it bluntly: “We really don’t want CBDCs… they’re the inverse of crypto.”
Broader Financial Impacts
It’s not just the crypto world that could face disruption. A report titled “CBDC and Banks: Disintermediating Fast and Slow” warns that retail CBDCs could pull deposits away from traditional banks. This could force banks to rethink their lending models and overall operations.
Banks have relied on customer deposits as a stable source of funding for lending activities. If people start holding more of their money directly with central banks through CBDCs, that traditional banking model might need significant adjustments.
Finding a Middle Path
Despite all the tension, some researchers believe coexistence is the most likely outcome. The idea is that CBDCs could handle regulated digital cash for everyday transactions, while cryptocurrencies continue serving roles that value privacy and global transfers.
So are CBDCs good or bad for crypto? Honestly, probably both. They’ll likely bring tighter regulation and increased competition, but they might also push more people toward digital finance in general.
The real question isn’t whether CBDCs are coming – they clearly are. The question is whether cryptocurrencies can evolve quickly enough to maintain their relevance in a world where every government wants its own piece of the blockchain revolution. It’s going to be interesting to watch how this plays out over the next few years.