Publication date: April 30, 2026

When we wrote about the digital euro on 19 March 2026, we mainly looked at what it could mean for Europe and the crypto market. But the digital euro is only one part of a much larger story. Around the world, central banks are working on their own digital money, also known as CBDCs: Central Bank Digital Currencies. What stands out is that the three largest economic powers, China, the United States and Europe, are each choosing a completely different direction.
  

This is no longer just a technical discussion. It is increasingly becoming a global battle over who gets to shape what the money of the future will look like.

You can reread our previous article about CBDCs in Europe HERE to stay fully up to date. 

What is a CBDC again, briefly explained? 

A CBDC is digital money issued by a central bank. Whereas Bitcoin or Tether are issued by private parties, a CBDC is issued by the government itself. Think of it as a euro, dollar or yuan, but stored on your phone instead of as a coin or banknote in your wallet.

According to the Atlantic Council, 137 countries are now exploring a CBDC. Together, they represent 98 percent of the global economy. Three small countries have already fully launched one: the Bahamas, Jamaica and Nigeria. Yet the most interesting decisions are being made in the world’s largest economies. 

China: full speed ahead, with a surprising twist 

China is clearly the frontrunner. The digital yuan, also known as the e-CNY, has been in use since 2020 and now has more than 230 million wallets. Total transaction volume has reached around 16.7 trillion yuan, equivalent to approximately 2.4 trillion dollars.

But on 1 January 2026, China made a remarkable decision. From that date, interest is paid on the digital yuan. People who hold digital yuan therefore receive a return on their balance, similar to a regular savings account. That may sound like a small detail, but in reality it is a fundamental change.

Until now, almost all central banks worldwide had agreed that a CBDC should function like digital cash. Convenient for payments, but not intended for saving. The reason for this is simple. If a central bank pays interest on digital money, people may want to move their savings from ordinary banks to the central bank. That could destabilise the entire banking system.

China is now ignoring that consensus. The argument from the Chinese central bank is that the digital yuan will otherwise never be able to properly compete with private platforms such as Alipay and WeChat Pay, which already dominate Chinese payments. To limit the risk for banks, China has introduced deposit protection for digital yuan wallets, while commercial banks remain the main point of contact for users. The geopolitical goal is also clear. China wants to reduce its dependence on the dollar in international trade, especially with countries within the BRICS bloc.

The United States: from CBDC to stablecoins 

While China is accelerating, the United States is doing the opposite. In January 2025, President Trump signed an executive order prohibiting federal agencies from developing or promoting a CBDC. In July 2025, Congress passed the CBDC Anti-Surveillance State Act, formally banning a digital dollar.

Why is this a radical step? The American argument is that a CBDC would give the government too much insight into citizens’ financial transactions. The fear of a surveillance state outweighed the strategic importance of a digital dollar.

But this does not mean that the US is giving up the race for digital money. On the contrary. That same Congress also passed the GENIUS Act, which sets rules for dollar stablecoins such as USDC and Tether. The American strategy is therefore clear: leave digital money to the private sector, but make sure the dollars behind that money remain dominant. At the moment, 97 percent of the global stablecoin market consists of dollars.

Europe: the middle ground 

Europe is choosing a third route. As we wrote earlier, the digital euro is not intended for saving, but for payments. There is a holding limit of around 3,000 euros per person and no interest is paid on it. The European Central Bank explicitly wants to prevent people from moving their savings from ordinary banks to the digital euro.

At the same time, Europe also allows private stablecoins, but under strict rules through the MiCA regulation: Markets in Crypto-Assets. The European approach is therefore a combination. A public digital euro for everyday payments, alongside private stablecoins under strict supervision.

What does this mean for the crypto market? 

These three different choices have direct consequences for crypto. For Bitcoin, the impact is limited. Bitcoin mainly functions as a store of value, not as an everyday payment method. In that respect, CBDCs do not really pose direct competition.

For stablecoins, the picture is more complicated. In the US, stablecoins are effectively the official strategy. That means more clarity, more institutional adoption and likely further growth. In Europe, the digital euro will compete with stablecoins for everyday payments, but stablecoins remain useful for international transactions and DeFi applications. In China, foreign stablecoins remain banned.

Privacy 

What all three approaches have in common, despite their differences, is the question of privacy. With the e-CNY, the Chinese central bank can, in principle, monitor every transaction. The digital euro promises a high level of privacy, but it is not fully anonymous like cash. American stablecoin issuers must comply with strict KYC and anti-money laundering rules.

Conclusion

The global CBDC race is no longer just a technical experiment. It is a battle between three visions for the future of money.

China is choosing state-driven innovation, with a CBDC that directly competes with private payment systems. The US rejects a public CBDC and is fully focusing on regulated private stablecoins. Europe is looking for the middle ground, with a public digital euro alongside strictly regulated private stablecoins.

The winner of this race will not only determine what your money looks like in ten years’ time. That winner will also help determine which currency dominates global trade, how much financial privacy citizens still have and what role decentralised cryptocurrencies will still play in this new financial system.

For crypto investors and crypto enthusiasts, this is one of the most important macro stories of the coming years. Not because it directly pushes the price of Bitcoin up or down, but because it sets the rules within which the entire crypto ecosystem must operate.

Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.