Central Bank Digital Currencies Accelerate As Europe, China, And Africa Expand Pilots: Impact On Stablecoins And DeFi
Central Bank Digital Currency adoption is accelerating as 137 countries representing 98% of global GDP actively explore digital currencies. With major CBDC pilots expanding across Europe, China scaling its digital yuan, and African nations deploying retail CBDCs, the landscape for stablecoins, decentralized finance, and cross-border payments faces significant transformation.
Europe And China Lead Global CBDC Development
The European Central Bank confirmed its digital euro project will reach a launch decision following successful pilot programs with commercial banks and payment providers. The ECB is conducting real-world tests focused on privacy features, offline payment capabilities, and interoperability across the euro area. Legislative consultations with the European Parliament advanced in 2025, positioning the digital euro as a complement to cash while strengthening Europe’s digital sovereignty.
China’s digital yuan dominates global CBDC development with 260 million domestic users and transaction volume reaching 7 trillion yuan, approximately $986 billion. The People’s Bank of China expanded trials to include cross-border settlements through Project mBridge, connecting China, Thailand, the United Arab Emirates, Hong Kong, and Saudi Arabia for oil payment settlements and foreign exchange operations.
The United Arab Emirates launched its Digital Dirham pilot in November 2025, with plans for gradual expansion into peer-to-peer, commercial, and cross-border use cases. The full launch targets late next year, positioning Dubai as a global CBDC hub through partnerships with JPMorgan Chase & Co. (JPM) and HSBC Holdings PLC (HSBC). The Digital Dirham aims to reduce remittance costs while improving transparency and interoperability …
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