FINBRIDGEFIELD NOTES
The day cash becomes data.A single coin breaking into small square dots.Q.23

What is a central bank digital currency?

The day cash becomes data.

Central banks that have issued paper notes are now weighing digital money. Some countries already use it; others are still preparing.

In 30 seconds

The digital form of a banknote.

Digital money, issued by a central bank.

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Two kinds

The Bank for International Settlements (BIS) survey asks about central bank digital currencies in two kinds: retail, for use by the public, and wholesale, for settlement between banks.[1]

Unlike crypto-assets, they are issued by the central bank.

91% are considering it.

Many central banks are exploring a digital currency.

91%

Share of central banks exploring a digital currency (BIS 2024 survey, 93 banks)

Retail, wholesale, or both.

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The survey results

In the 2024 survey published by the BIS in August 2025, 91% (85) of the 93 central banks surveyed were exploring a retail CBDC, a wholesale CBDC or both.[1]

Countries where it is already in use.

The Bahamas and Jamaica have already begun distributing one.

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The Bahamas

The Central Bank of The Bahamas began releasing a digital Bahamian dollar (the Sand Dollar) nationwide, gradually, from 20 October 2020.[2]

Jamaica

The Bank of Jamaica began rolling out JAM-DEX, the digital form of Jamaica’s currency issued by the central bank, in 2022, and set out amendments to make it legal tender.[3]

The euro’s next step.

The euro area aims for a first issuance during 2029, if legislation is adopted.

2029

Target year for a first issuance of the digital euro

If legislation is adopted in 2026. The final decision to issue comes after the law is adopted.

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The timetable

In October 2025 the European Central Bank (ECB) announced that, if EU legislation is adopted during 2026, a pilot could begin from mid-2027 and it would be ready for a first issuance during 2029.[4]

It says the final decision on whether, and when, to issue will be taken only once the legislation has been adopted.[4]

A scale for reading money as data.

A scale for reading digital currencies.

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Who issues it

Whether it is issued by a central bank or by someone else.[1]

Who uses it

Retail or wholesale.[1]

How far along

Exploring, piloting, issuing: which stage it has reached.[2][3][4]

This is not advice

This edition explains how central bank digital currencies work. It does not recommend any currency or service.

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What this edition cannot tell you

Sources