Worldwide CBDC Delays Increase as South Africa Adopts Careful Stance

Central banks around the world are reassessing their digital currency ambitions, and South Africa has become one of the latest countries to take a careful pause. The global push toward central bank digital currencies once looked inevitable, yet 2025 has introduced new doubts as economic conditions, regulatory uncertainty, and slow public adoption prompt several nations to reconsider their timelines.

Good to Know

• A growing share of countries are delaying CBDC plans due to regulatory uncertainty and slow adoption.
• South Africa will only proceed with a retail CBDC once privacy, offline use, and accessibility requirements are fully met.
• South Korea and the UK are placing greater focus on stablecoins and private payment options rather than moving quickly toward national digital currencies.

South Africa’s central bank reported that nearly 16 percent of adults remain outside the formal financial sector, with many still relying on cash for daily transactions. The institution sees long-term potential in digital finance, but it stressed that any retail CBDC must behave like physical cash, work offline, protect user privacy, and remain simple enough for broad adoption. Without meeting these conditions, no launch will proceed.

Recent work has centered on modernizing settlement systems and improving connectivity between financial institutions. These upgrades may eventually support a CBDC framework, but the bank noted that digital currencies in several early adopter countries have experienced slow uptake, reinforcing its measured approach.

Global Pause Extends Beyond Emerging Markets

South Korea has chosen to halt further testing under its “Project Han River” initiative. Regulators in the country are now prioritizing stablecoin rules and upgrades to existing payment infrastructure, believing private companies may deliver faster, more flexible solutions in the near term.

The United Kingdom has taken a similar view. The Bank of England is slowing development of the “digital pound,” indicating that private-sector innovation may deliver many of the efficiencies once attributed to national digital currencies. Officials prefer further analysis before committing resources in a challenging economic environment.

A study released by the Official Monetary and Financial Institutions Forum in 2025 identified that 31 percent of central banks globally have delayed or paused CBDC programs. The report shows hesitation from both developed and developing economies, driven by concerns about regulatory clarity, economic cost, and unpredictable public adoption.

Regulators across multiple countries also acknowledge the growing influence of stablecoins. Their expansion has shifted attention toward establishing oversight rules rather than launching entirely new state-backed digital instruments. Some governments have decided that strengthening traditional payment systems may be more cost-effective for now.

Despite the slowdown in advanced markets, several emerging regions—particularly in the Middle East and parts of Africa—continue to accelerate CBDC development. These markets see potential advantages for financial inclusion, regional integration, and cross-border settlement. China’s digital yuan is also gaining visibility in selected zones, adding competitive pressure for nearby economies to advance their plans.

For now, many major economies appear to be pausing CBDC rollouts while evaluating legal frameworks, economic trade-offs, and the long-term role of stablecoins within their payment systems.

FAQ

Why is South Africa slowing its CBDC plans?

The central bank wants offline capability, clear privacy standards, and strong accessibility before launching any retail CBDC.

Which other countries have slowed CBDC efforts?

South Korea and the United Kingdom have significantly reduced or paused development.

What is the global trend in 2025?

A study found that 31 percent of central banks have delayed or paused CBDC rollouts.

Why are stablecoins influencing CBDC decisions?

Stablecoins offer functional alternatives, prompting regulators to focus on clearer rules before pushing ahead with national digital currencies.

Is the CBDC slowdown global?

Not entirely. Several emerging markets in the Middle East and Africa are accelerating development to improve financial access.