China, the Eurozone, and the US are racing to launch CBDCs, each with unique designs, goals, and geopolitical implications
· Major economies — the Eurozone, China and the US — are racing to launch central bank digital currencies (CBDCs) in mid-2025.
· Each digital currency — the digital euro, e-CNY and Fedcoin — has a different design, goal, and impact on global finance.
· This report compares their status, key features, and what this battle means for international payments, data privacy and geopolitical power.
The digital currency wars are heating up in July 2025; governments are exploring digital versions of CBDCs to modernise payments, enhance monetary control and shape the next phase of global financial infrastructure. The European Central Bank (ECB) is also preparing a digital euro, while China expands its e-CNY and the US continues to study the idea of Fedcoin. Each country is at a different stage and advancing its CBDC with distinct goals.
China’s e-CNY: Leading the pack
As of July 2025, China's e-CNY is the most widely adopted CBDC. With over 261 million users and $7.3 trillion in transactions, the currency is used daily for subway fares, government disbursements and more.
China is also spearheading the Mbridge pilot involving Hong Kong, Thailand and the UAE. The platform enables near-instant transactions up to 98% cheaper than Swift transfers.
Designed to be centralised and programmable, the e-CNY enables smart contracts and targeted fiscal stimulus. It serves as a digital alternative to physical cash and competes with platforms like WeChat Pay.
Beyond domestic convenience, some say the e-CNY is a strategic tool aimed at increasing state control over finance and promoting the yuan’s role globally.
ECB’s digital euro: Privacy-focused, sovereign design
The digital euro is still in a preparatory phase. Since November 2023, the ECB has pushed EU lawmakers to speed up digital euro legislation. On July 3, 2025, the ECB also signed a memorandum of understanding with the Anti-Money Laundering Authority (AMLA) to align compliance requirements.
Key design features include offline payment capability, free public access across the eurozone and wallet limits of around €3,000 to prevent capital flight from bank deposits. The digital euro is positioned as a central bank-issued, cash-like alternative..US Fedcoin: Slow and cautious
The US remains cautious. While the Federal Reserve continues to research CBDCs, no official launch has been announced.
A major hurdle is Executive Order 14178, signed by President Donald Trump in 2025, which explicitly prohibits federal agencies from launching or controlling digital currencies. Instead, the US is focusing on expanding the FedNow instant payments system as a non-CBDC alternative.
CBDC comparison table
Feature China e-CNY Digital euro US Fedcoin
Status (July
2025) Advanced pilots, wide use Preparation stage, awaiting legislation Research only, no launch date
Design Centralized, programmable Central bank-backed, intermediated Likely intermediated, identity-based
Privacy Managed anonymity (tiered) High privacy, offline support Identity verified with privacy layers
Offline
payments Yes, limited Yes Unknown / not announced yet
Purpose Cash replacement, global reach Cash-like digital option, independence Complement existing systems
Global reach Active cross-border pilots EU domestic use No planned international rollout
Global implications
China’s e-CNY and mBridge could reshape global payments and challenge legacy systems like Swift. CBDCs introduce new capabilities such as programmable money, targeted stimulus and better tracking. CBDC's will decide not just how people pay, but who controls money flows globally.
The digital currency contest remains ongoing. China leads in scale, while Europe prioritises privacy and the US remains strategically cautious. As CBDCs evolve, their impact on global finance could be transformative.
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