The Bank for International Settlements (BIS) has warned that central bank digital currencies (CBDCs) are vulnerable to cyber threats such as cyberattacks, digital bank robberies, and hacks. The report highlights the importance of cybersecurity as a significant risk associated with the increasing adoption of digital cash initiatives by monetary authorities worldwide. The report suggests conducting small-scale pilot tests for CBDCs to identify and mitigate vulnerabilities before any large-scale launch. Over 10 countries have already introduced live CBDCs, with China trialing a digital yuan among 200 million consumers, and the European Central Bank has initiated advanced prototyping for a digital euro.

Cecilia Skingsley, head of the Innovation Center at the Bank for International Settlements (BIS), stated that central banks around the world are not interested in personal data. This statement seems to be aimed at alleviating privacy concerns surrounding CBDCs, as the central bank group has been pushing governments around the world to continue their work on CBDCs in preparation for the future of payments. However, major jurisdictions such as the United States and the European Union are facing increasing criticism over their plans to issue CBDCs, with a major issue being whether and how citizens' privacy will be protected. Skingsley urged the public to remain open to technological innovation, and she believes that wholesale CBDCs are another form of currency used only between banks, which could become a "game changer" for cross-border payments, citing BIS Innovation Center projects such as Jura, Dunbar, and mBridge as examples.

The National Bank of Cambodia (NBC) has signed a memorandum of understanding (MoU) with Alipay to allow users of its digital currency, bakong, to access the Alipay merchant network and conduct cross-border transactions using QR codes. Bakong is not a central bank digital currency (CBDC), but operates on a blockchain and is a liability of the commercial banks that use it. The MoU will enable Cambodians to use their bakong wallets to shop with 83 million merchants worldwide on the Alipay network, while Chinese tourists with Alipay accounts can use the QR codes of the bakong KHQR system to shop in Cambodia. The bakong payment system was launched in 2020 and has already been used for 35.4 million transactions worth $12 billion in the first half of 2023.

The International Monetary Fund (IMF) is set to publish a handbook on central bank digital currencies (CBDCs), with initial findings suggesting that a well-designed CBDC could improve payment systems alongside other solutions. The handbook, due after the 2023 annual meetings, will cover a range of frequently asked questions on CBDCs, including policy objectives, legal considerations, cyber resilience and readiness to issue. While the US is not currently supportive of a digital dollar, other major jurisdictions such as the European Union appear more open to CBDCs, with an official at the Bank of Italy suggesting a digital euro could be the answer to stablecoins. The IMF paper advises policymakers to explore CBDCs carefully and systematically, given the complexities and novelty involved.

The 2023 PwC report indicates that despite the already live CBDCs of the Bahamas, Jamaica, and Nigeria, retail CBDC projects in India, Ukraine, and Russia are making rapid progress with formal announcements to launch within the next few years. India is at the forefront with its digital rupee development, Ukraine is accelerating its development in response to military conflict, and Russia is speeding up its CBDC project as a countermeasure to global sanctions​​.

The 2023 PwC Global Central Bank Digital Currency (CBDC) Index and Stablecoin Overview report reveals that 93% of central banks are now engaged in the development of CBDCs, with nearly 20% expected to issue a digital currency shortly. The Bahamas, Jamaica, and Nigeria have fully launched retail CBDCs to date. India leads the digital rupee development, anticipated to fully launch its CBDC in 2024, while Ukraine and Russia are actively progressing with their respective CBDC projects​​.

Charles Hoskinson, the creator of Cardano (ADA), has stated that the competition in the digital asset space is now between cryptocurrencies and central bank digital currencies (CBDCs). He warns of the dangers of CBDCs and advocates for the principles of decentralized crypto. Hoskinson believes that legitimate crypto projects are the opposite of CBDCs and that the adoption of these principles and philosophies will be the vindication of the fight against CBDCs. He also warns of the potential for transaction discrimination and the exclusion of political minorities if CBDCs are implemented.

The finance industry has been transformed by the introduction of blockchain technology and cryptocurrencies such as Bitcoin. Central banks are now exploring the use of digital currencies, with 11 countries already launching their own CBDCs.

Reports from the economic governance and European Monetary Union review departments highlighted the challenges faced by non-eurozone member states using CBDCs. The main issue is that the currency acceptance of the digital euro by the entire EU requires approval of international agreements between the EU and third countries.

Central bank digital currencies (CBDCs) are being explored by 130 nations, representing 98% of the global economy, with almost all G20 countries progressing to advanced phases of development in the past six months. It is expected that 24 central banks will launch their CBDCs by the end of the decade. While there are risks to consider, such as privacy issues and stability concerns, CBDCs have the potential to promote financial inclusion, provide governments with real-time access to financial data, and accelerate innovation in the payments sector.