Central Bank Digital Currency (CBDC) initiatives in Ghana and Thailand are demonstrating real-world traction and potential to reshape the future of digital payments, according to a new report by Giesecke+Devrient (G+D) in collaboration with the Official Monetary and Financial Institutions Forum (OMFIF).

The report, based on responses from 34 central banks—including the Bank of Ghana, Bank of Thailand, and European Central Bank—offers insight into the global trajectory of CBDC development and adoption. It combines survey data with interviews from senior central bank officials actively working to integrate CBDCs into the broader financial ecosystem.

Speaking on the findings, Dr. Wolfram Seidemann, CEO of G+D Currency Technology, explained that CBDCs offer a transformative pathway to bridge the gap between traditional cash and the digital economy. “The idea is to translate the key benefits of cash—security, privacy, and inclusivity—into a digital format,” he noted. CBDCs, unlike commercial payment platforms, offer a fee-free, public alternative to private systems such as PayPal, Visa, and Mastercard.

Importantly, CBDCs are not meant to replace commercial banks or private payment platforms. Instead, they are envisioned as complementary tools, with central banks providing a stable infrastructure upon which commercial financial institutions can innovate and deliver services.

According to the report, nearly half (48%) of the surveyed central banks expect to issue a CBDC within the next three to five years. A key driver behind this shift is the desire to safeguard monetary sovereignty, with 50% citing it as a top motivator. Other significant incentives include enhancing financial inclusion, enabling offline transactions, and ensuring central banks maintain their relevance in the evolving digital landscape.

Regional Priorities and Lessons from Pilot Projects

The report underscores that motivations for CBDC adoption vary by region. In Europe, sovereignty and regulatory independence are top priorities. In contrast, African central banks are focused on financial inclusion, particularly as mobile money services—though widely used—often impose high transaction and onboarding fees.

G+D’s collaboration with the Bank of Ghana offers a compelling case study. A CBDC pilot in a rural area of Ghana demonstrated strong user adoption despite initial hesitation. To overcome smartphone access limitations, the project used cards loaded with digital currency. Over time, locals began exchanging cash for CBDC at merchants, perceiving it as more secure than physical money. The Bank of Ghana reported a 60% increase in usage, marking it as a significant milestone in expanding digital financial access.

“This was the first digital payment experience for many people in that village,” said G+D’s Head of Digital Currencies, Lea Herborg. “It showcased not just that the technology works, but that it can genuinely empower people in underserved areas.”

Thailand’s pilot, in partnership with Siam Bank, also highlighted the importance of offline capabilities and integration with existing banking infrastructure. The report found a notable improvement in offline functionality, with 20% of central banks now reporting satisfaction with their CBDC’s offline performance—up from none in 2023.

Challenges Ahead: Regulation and Sovereignty

Despite the progress, CBDC adoption faces hurdles. Political approval, regulatory alignment, and cybersecurity remain pressing concerns. Herborg pointed out that in Europe, the dominance of non-European payment systems raises sovereignty issues. “In Germany, it’s nearly impossible to make online payments without relying on U.S.-based platforms like PayPal, Visa, or Mastercard. That level of dependency is increasingly seen as a risk,” she said.

The European Central Bank’s ongoing work on the digital euro reflects these concerns. Although technically feasible, the digital euro’s rollout depends heavily on political will and regulatory consensus across EU institutions.

Looking Forward

Despite regulatory and political complexities, Herborg expressed optimism about the future of CBDCs. She believes their ability to provide inclusive, sovereign, and technologically resilient payment infrastructure makes them a vital component of the digital financial landscape.

“The journey to CBDC implementation is not just about technology—it’s about policy, inclusion, and reimagining what public money can do in the digital age,” Herborg concluded.

As CBDC initiatives in countries like Ghana and Thailand continue to show tangible results, momentum is building for broader adoption. For central banks worldwide, the message is clear: CBDCs are no longer just theoretical—they are becoming a practical reality.