CBDCs Struggle to Prove Value Despite Global Push

Despite the United States’ rejection of a central bank digital currency (CBDC), the global progress of CBDCs has not halted. However, their success has been questionable so far, according to Olga Goncharova, CEO at the consulting firm Rizz Go and former director of government relations in the Commonwealth of Independent States at Binance.

Goncharova stated that while global CBDC projects have not failed, they have also not lived up to their anticipated potential. She described CBDCs as "expensive imitations of existing traditional fiat currencies that citizens and businesses already use through online banking and payment apps." This perspective was shared during the Blockchain Forum in Moscow.

Goncharova highlighted that modern CBDC initiatives have yet to offer users real added value compared to traditional payment channels. She noted that even in China, where the digital yuan project has been more active than others, its share in the payment system remains minimal. This is despite China’s digital yuan being one of the biggest CBDC projects worldwide, offering an electronic version of the Chinese yuan for online and offline transactions.

Goncharova also pointed out that the European Union has been pushing its digital euro project to protect its financial autonomy. The digital euro is seen more as an instrument of strategic autonomy than as a response to market demand, aiming to reduce reliance on payment giants like Visa and Mastercard. However, the efforts to create a pan-European payment system have faced challenges, including market share concerns by banks and adoption difficulties.

Russia, another active jurisdiction in the global CBDC race, has yet to roll out its digital currency. The digital ruble, which has been on multiple trials since early 2022, could be postponed further. Bank of Russia Governor Elvira Nabiullina announced that the mass adoption of a digital ruble would occur later than planned. However, Finance Minister Anton Siluanov recently claimed that the digital ruble is scheduled to be rolled out for commercial banks in the second half of 2025.

Goncharova noted that in Russia, there is no urgent need to reduce dependence on foreign payment systems as in the EU. The digital ruble is perceived as a tool for increasing the efficiency of internal settlements. Its further development will depend on how clearly the tasks are formulated and whether there is practical sense for users and the economy.

While Russia has been delaying its digital ruble, some officials have recently called on the government to create ruble-pegged stablecoins, echoing the US’s stablecoin push. Several ruble stablecoins have already been introduced, but it remains to be seen whether these initiatives can compete with giants like Tether’s USDt (USDT).