Central bank digital currencies diverge and progress

Significance European Parliament committees failed to submit EU legislation authorising the digital euro before the June parliamentary elections. Political reluctance is an obstacle in the United States and Europe. Due to technical complexities and political sensitivity, Washington remains cautious about central bank digital currencies (CBDCs). China continues to lead on CBDCs, hoping to unsettle dollar dominance of world trade and finance. Impacts In Europe, the current target is to launch the digital euro in 2027, but legislative delays will make this date look increasingly unlikely. The Biden administration supports CBDC exploration, but no progress is likely in the United States before the presidential election. China will expand the scope of its e-CNY pilots and reinforce its role in global cooperation, but there is no date for a full-scale launch.