Central Bank Digital Currencies (CBDCs) and other digital currencies – March 2026
It is becoming increasingly difficult to keep up with all of the announcements from a raft of central banks and think tanks but here are some that caught my attention:
CBDCS
Official Announcements
• The ECB aims to be ready for a potential first issuance of the digital euro during 2029, assuming the digital euro Regulation is adopted in 2026. To prepare for this both technically and operationally, and to lay the groundwork for a seamless and secure launch, it plans to run a 12 month pilot starting in the second half of 2027.
Resources, Reports and Announcements
• The European Central Bank issued Research Bulletin 138 entitled The digital euro: awareness, adoption and household portfolios. Amongst its many findings were that:
o many consumers would be open to using central bank money in digital form – a digital equivalent of cash
o under normal conditions, a digital equivalent of cash would primarily be used for transactions rather than as an investment or savings vehicle
o the introduction of digital central bank money was estimated to lead to only a small reallocation of liquidity away from bank deposits
• The IMF issued a FinTech note on Central Bank Exploration of Tokenized Reserves. Key findings include:
o Central banks exploring tokenised reserves as a way to preserve the safety, liquidity, and policy role of central bank money within tokenised ecosystems by enabling risk-free settlement and support for more efficient, automated, and resilient wholesale payment systems
o To ensure policy effectiveness, central banks must align their approach to implementing tokenised reserves with their policy objectives. This involves selecting ledger designs, governance structures, and stakeholder engagement that reflect the desired levels of control, risk tolerance, and authority over issuance, access, data, and system continuity
o Although tokenisation may not fundamentally affect central banks’ ability to implement monetary policy, it could introduce enhancements such as automated or programmable liquidity management, which may require changes to governance, legal frameworks, and risk management
o Alternative solutions to tokenised reserves exist—such as real-time gross settlement (RTGS) links, omnibus accounts, and privately issued tokenised money. Each offers varying degrees of risk, cost, control, programmability, and alignment with policy objectives
o As central banks explore the potential of tokenised reserves, they may adopt varying strategic approaches—guided by policy goals, market readiness, and institutional capacity, and supported by research, testing, and legal preparation.
• UKFinance published a blog on Global CBDC developments in 2025: Emerging trends and geostrategic considerations. It noted that as jurisdictions around the world continue exploring CBDCs, 2025 had seen a notable shift in emphasis from early retail-payment pilots toward broader infrastructure, cross-border projects and strategic policy objectives.
• The Centre for Economic Policy Research released a blog on Central bank digital currency, the future of money, and politics. The CEPR argues that central bank digital currency is not just another digital payment tool, but state-issued money with the potential to fundamentally reshape monetary systems. It emphasises the differences between neutrality and non-neutrality in adoption, and the implications of both for the financial system.
• India has launched the country’s first Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) in Gujarat making it the first state to integrate the digital rupee into food grain distribution using programmable money. The reform will ensure that subsidised food grains reach the rightful beneficiary without leakage, corruption or delay.
Stablecoins
• S&P Global issued a major research paper on stablecoins. Amongst its key predictions are that:
o Banks and bank-affiliated entities will likely issue stablecoins in 2026, particularly in Europe, where there is growing interest in developing euro-pegged stablecoins
o Euro-backed stablecoins reach €500B alone from tokenisation markets
o Euro-backed stablecoins reach €100B from payments within tokenisation
o Overall market likely to be 2.2% of Eurozone deposits by 2030
o Stablecoins become just one settlement layer, together with wCBDCs and tokenised deposits
It includes the following table:
• Qivalis announced the addition of BBVA into its consortium of 11 other European banks developing a euro-pegged MiCA-compliant stablecoin in the second half of 2026. The stablecoin will be backed 1:1, with at least 40% of reserves held in bank deposits and the remainder allocated to high-quality, short-term euro-area sovereign bonds diversified across EU countries. The reserves will be held with multiple highly rated credit institutions, and the design includes 24/7 redemption for token holders.
• BVNK issued a report based on a survey of 4,500 stablecoin holders. Key findings include:
o Those who get paid in stablecoins (freelancers, gig workers, marketplace sellers) receive around 35% of their income this way. 75% say it has increased their international business. Desire to get paid in stablecoins is highest in Africa and APAC
o Lower fees (30%), security (28%), and global access (27%) drive current adoption of stablecoin payments
o half of stablecoin holders have bought something from a business specifically because it accepted stablecoins
• The IMF issued a Departmental Paper to explain and document stablecoins, and present their potential benefits, while providing a holistic view of risks, policy frameworks, and emerging regulations.
Naresh Aggarwal
09 March 2026
