Why is CBDC such a topic that continues to draw worldwide attention? Because besides cryptocurrencies, a central bank’s digital currency is an equally important financial innovation.

Let’s look at what CBDC really is. As more and more countries begin rolling out experiments, China released the digital yuan in 2020, and the U.S. started testing through the Hamilton project in 2022. This is a sign that the financial system is truly changing.

Put simply, CBDC is a digital currency issued by each country’s central bank. It’s not just “money,” but also includes the “system” behind it. That means payments can be made quickly and checked with high accuracy. And unlike “natural” cryptocurrencies, it’s difficult to make profits just by speculation, because the currency is managed by a central bank supported by the country’s underlying economy.

There are two interesting types. The first is wholesale CBDC, designed for banks and financial institutions to use with one another. Thailand has tested it with the Inthanon project. The second is retail CBDC, expanded so the general public can use it naturally in daily life. Thailand is currently experimenting with the Bang Khun Phrom project.

Compared with cryptocurrencies, CBDC is another category entirely. Cryptocurrencies are private money that fluctuates with supply and demand. But CBDC is money under government oversight, with greater stability. And compared with PromptPay, CBDC is a deeper system—this isn’t just a money-transfer app, but a real digital currency issued by the central bank.

Why are central banks around the world accelerating the development of CBDC? Because digital money usage is increasing, cross-border transactions are becoming more complicated, and cryptocurrencies are pulling people toward other financial services. Central banks need to respond by offering systems that are safer, faster, and more trustworthy.

Let’s see who has already launched. Jamaica released JAM-DEX in 2022. Nigeria launched eNaira at the end of 2021. China has also tested the digital yuan, with an enormous amount in circulation. India has announced it will launch the Digital Rupee. Sweden is developing the e-Krona. The U.S., the U.K., and Canada are all in the testing phase as well. Singapore, Australia, and Brazil are also preparing.

Those who need to adapt quickly include commercial banks and payment companies. They have to find new options with low costs and high efficiency. Crypto investors need to assess whether CBDC is a challenge or an opportunity for their projects, because for some coins, demand may decline.

In summary, CBDC is a future that is fairly certain for the financial system to reach. The only question is what form it will take—and how quickly it will arrive. Everyone—from financial service providers and merchants to the public, all the way to crypto investors—needs to prepare for this change.