From Crypto to CBDCs: Digital currency and the future of global finance

Digital payments, central bank digital currencies (CBDCs) and stablecoins are reshaping global finance. Major pilots, regulatory breakthroughs and innovations such as interest-bearing digital wallets are rolling out across key regions, particularly in emerging markets. As of January, governments and central banks increasingly prioritize financial inclusion, digital payments, cross-border efficiency and strategic competition with privately issued stablecoins. What once appeared experimental is now becoming central to the future architecture of money.

In our book “The Digital Currency Revolution: CBDCs, Crypto and the Future of Global Finance,” we examine the full spectrum of technology-driven disruptions reshaping global payments and financial ecosystems. The book explores the rise of digital payments — now ubiquitous in emerging markets such as China, India and Brazil; the evolution of cryptocurrencies and stablecoins into an independent asset class; and the diverse regulatory approaches adopted by governments and central banks worldwide.

This work reflects a close collaboration with student researchers at the Cañizares Center for Emerging Markets in the Cornell SC Johnson College of Business. Here, we highlight key initiatives accelerating these trends.

Stablecoin rules take hold in the United States

The United States experienced significant regulatory shifts in 2025, marked by a clear stance against issuing a retail U.S. CBDC. At the same time, policymakers moved decisively to recognize and regulate cryptocurrencies and stablecoins, positioning the U.S. among the first countries to establish a comprehensive digital-asset framework.

Following the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act — in 2025, stakeholders are now focused on Quarter 1 2026 requirements for full reserves and regular audits for stablecoin issuers. These measures are expected to bolster trust amid rising institutional adoption. Major banks including JPMorgan and Citibank have begun integrating stablecoins into their operations, exemplified by the launch of JPM Coin — JPMorgan’s USD-denominated token — on a public blockchain.

The digital euro gears up in the European Union

Toward the end of 2025, the European Central Bank (ECB) announced the completion of its technical and preparatory work on a digital euro. ECB President Christine Lagarde formally transferred responsibility to political institutions for the next phase of implementation, underscoring the currency’s strategic importance.

At the regulatory level, the Markets in Crypto-Assets (MiCA) framework in Europe stabilized the stablecoin market through enhanced transparency and liquidity requirements. In parallel, the ECB advanced hybrid CBDC models to support cross-border payments, with interoperability trials involving Singapore, highlighting Europe’s growing focus on international payment integration.

UAE and Singapore lead on interoperable digital payments

The United Arab Emirates has emerged as a first mover in digital assets, announcing plans to roll out a digital dirham — the dirham being the basic monetary unit for UAE and Morocco — for wholesale, retail and cross-border use through a phased and internationally coordinated approach. In late 2025, the UAE officially launched transactions with China using mBridge, a multi-central bank CBDC platform, reinforcing its ambition to become a global payments hub.

Singapore has similarly positioned itself at the forefront of digital finance. The Monetary Authority of Singapore — the city-state’s central bank — introduced dedicated stablecoin regulations and announced expanded CBDC trials for 2026, reinforcing its role as a trusted regulatory and innovation center.

Emerging markets lead on digital payments

Building on the success of platforms such as UPI in India, PIX in Brazil, M-Pesa in Kenya, and Alipay and WeChat Pay in China, emerging markets have taken the global lead in digital payments. This widespread adoption has created the foundation for these economies to explore and scale CBDCs more rapidly than many advanced economies.

The world’s first interest-bearing CBDC launches in China

On January 1, the People’s Bank of China introduced interest-bearing e-CNY (digital renminbi) wallets, aligning the accounts more closely with commercial bank deposits and extending deposit insurance to verified balances — a global first after more than a decade of pilots.

This move strengthens the competitiveness of the e-CNY relative to dominant private platforms such as Alipay and WeChat Pay while accelerating the rollout of programmable money across more than 20 cities nationwide.

India’s offline digital rupee

Following the success of the UPI mobile payments system, the Reserve Bank of India (RBI) is expected to continue expanding e-rupee pilots nationwide in 2026. The focus is on integration with e-wallets, strengthened know-your-customer (KYC) processes and improved distribution networks. RBI’s offline digital rupee — based on near-field communication technology, or NFC — was rolled out through 15 banks in late 2025, enabling transactions even without internet connectivity.

Programmability features are increasingly being used to deliver targeted public benefits including Andhra Pradesh’s Deepam 2.0 subsidy program for liquefied natural gas and Gujarat’s G-SAFAL scheme — short for Gujarat Scheme for Antyodaya Families for Augmenting Livelihoods — which restricts livelihood assistance to approved agricultural inputs.

Brazil’s PIX and a rethink of CBDC design

Latin America presents a more heterogeneous picture. In a notable pivot — and building on the success of the PIX digital payments system — Brazil’s Drex initiative has temporarily moved away from blockchain-based architecture due to privacy and scalability concerns. Instead, the project is narrowing its focus on streamlining collateral management and reconciling liens for credit guarantees; a public-facing product is targeted for mid-2026.

Elsewhere, Peru’s retail CBDC pilot expanded to more than 100,000 users, while Argentina explored inflation-linked stablecoin mechanisms. Across the region, these initiatives highlight the potential of digital assets to address persistent financial inclusion challenges.

Reviving the eNaira and advancing the eCedi in Africa

In Africa, Nigeria’s eNaira has seen modest adoption as a retail CBDC. However, the launch of cNGN — a central bank-backed naira stablecoin interoperable with the eNaira — in 2025 marked an important course correction. Combined with structural reforms and a growing diaspora, these developments contributed to increased remittance inflows.

Meanwhile, Ghana is well positioned for a controlled rollout of the eCedi, featuring merchant QR codes designed to improve usability and expand financial inclusion.

Looking ahead

As 2026 unfolds, divergent approaches to stablecoins, cryptocurrencies, CBDCs and cross-border payments are playing out against a rapidly shifting global financial order. While enthusiasm is high, the jury remains out on which countries will successfully scale CBDCs nationally — and which will emerge as global hubs for stablecoin and cryptocurrency innovation.

What is clear is that digital money is no longer a peripheral experiment. It is becoming a defining feature of the future of global finance.

About the authors