19 Countries Advance CBDC Tests, According to IMF

The International Monetary Fund (IMF) has found that 19 countries, including the United Arab Emirates (UAE), are in an advanced phase of testing central bank digital currency (CBDC).

In the Middle East, Bahrain and Saudi Arabia are also proceeding with their CBDC tests. Georgia and Kazakhstan have moved to the proof-of-concept stage following successful CBDC pilot programmes, as indicated by the IMF.

A digital currency is emerging among the five leading BRICS alliance countries, designed to facilitate cross-border payments that could potentially challenge the US dollar’s monopoly on global trade. This action is expected to be felt by various different sectors of the US economy.

According to the IMF, CBDCs have the potential to enhance financial inclusion and payment efficiency in the BRICS countries and the Middle East. Specifically, they could improve international payment services aimed at eliminating inefficiencies such as differences in data format, operational rules across regions, complex regulatory compliance checks, etc.

This could lead to significant reductions in transaction costs, which would be most beneficial for oil exporters such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, all members of the Gulf Cooperation Council (GCC).