CBDCs face resistance from key central banks
The Reserve Bank of Australia and the Bank of Canada have scaled back their projects to allow for further research, while Colombia’s central bank is sceptical about the need for CBDC.
Australia, Canada, and Colombia have taken a step back from launching central bank digital currencies (CBDCs), raising concerns about their necessity and potential risks. While many governments push forward with digital currency plans, these countries’ central banks argue that existing payment systems already serve the public well. They also fear CBDCs could destabilise the financial system and accelerate the decline of cash.
The Reserve Bank of Australia and the Bank of Canada have both scaled down their CBDC projects, citing the need for further research. Colombia’s central bank similarly expressed doubts about the need for a CBDC, whether retail or wholesale. The decision reflects broader concerns within the financial industry, as critics warn that CBDCs could infringe on privacy and give governments excessive control over individual accounts.
Although CBDCs are still advancing in other parts of the world, the recent statements signal that their implementation may not be as inevitable as once believed. Central banks remain cautious, and the debate over the future of digital currencies continues.