US Trails China In The Digital Currency Race. Here's Why

China became the first major economy to launch a digital currency in 2021.

Over 100 countries are currently exploring Central Bank Digital Currencies (CBDCs), representing at least 95 per cent of the global economy.

CBDCs are the digital version of an official currency. A CBDC may or may not be backed by blockchain technology, but it offers a ‘sovereign guarantee' that crypto will not. However, like cryptos, a CBDC is expected to facilitate trust, safety, and liquidity. 

According to a recent Deloitte report, the Asia Pacific region has been the “frontrunners” in CBDC projects. “Seven out of the top 10 CBDC projects are being conducted in the APAC region alone,” it noted.