Intensifying Competition in Central Bank Digital Currencies: Global CBDC Adoption and Blockchain Technology Innovation by 2025
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Acceleration of Global CBDC Competition and Blockchain Technology Innovation
As of December 2025, the Central Bank Digital Currency (CBDC) sector is experiencing unprecedented growth, marking a new turning point in blockchain technology. According to the latest report from the Bank for International Settlements (BIS), over 130 countries worldwide are participating in CBDC research and development, with 36 of them operating actual pilot programs. Notably, China’s digital yuan (e-CNY) surpassed a cumulative transaction volume of 7 trillion yuan (approximately 1 trillion dollars) as of November 2025, serving as a representative case proving the practicality of CBDCs.
The Bank of Korea has fully launched the second phase of its digital won pilot program in the latter half of 2025, expanding cooperation with major domestic financial institutions and fintech companies. In this process, Samsung SDS (based in Seoul) plays a key role in building blockchain-based financial infrastructure, with its blockchain business revenue in the third quarter of 2025 increasing by 47% year-on-year to 234 billion won. SK Telecom (based in Seoul) is also participating in the construction of a CBDC support infrastructure based on its communication network, developing a comprehensive service model linked with digital identity verification solutions.
The global CBDC market size is estimated to be around 12 billion dollars in 2025 and is projected to grow at a compound annual growth rate (CAGR) of 28.3% to reach 39 billion dollars by 2030. This growth is driven by the strategic judgment of central banks to address inefficiencies in existing payment systems, expand financial inclusion, and respond to the rapid growth of the cryptocurrency market. Especially after the COVID-19 pandemic, the demand for contactless transactions has surged, highlighting the importance of digital payment systems.
Analysis of Technological Innovation and Competitive Structure
The blockchain technology required for CBDC implementation demands a different approach from traditional public blockchains. Central banks prefer private or consortium blockchains, seeking solutions that simultaneously satisfy scalability and regulatory compliance, capable of processing tens of thousands of transactions per second. The People’s Bank of China’s digital yuan adopts a two-tier system, separating wholesale transactions between central and commercial banks from retail transactions among general consumers. This system currently demonstrates the capability to process 300,000 transactions per second.
The European Central Bank’s (ECB) digital euro project entered a full-fledged technology verification phase in October 2025, focusing on privacy protection and offline transaction support. The ECB emphasizes that the digital euro is a digital version of cash, implementing a limited anonymity feature to protect personal information. For this, Germany’s SAP (based in Walldorf) and the Netherlands’ ING Group (based in Amsterdam) are participating as technology partners.
Meanwhile, the Bank of Japan’s digital yen research is expanding collaboration with the private sector from the latter half of 2025, with a consortium led by Sony (based in Tokyo) and Mitsubishi UFJ Bank (based in Tokyo) in charge of technology development. Japan’s approach prioritizes compatibility with existing financial systems, favoring a hybrid structure combining centralized databases and encryption technology over blockchain technology.
Kakao (based in Jeju) began developing a CBDC-linked service through KakaoPay in the first half of 2025, filing 15 patents for blockchain technology-based digital wallet solutions. Kakao’s massive user base of 47 million monthly active users is expected to play a crucial role in the popularization of CBDCs. LG CNS (based in Seoul) recorded a 23% domestic market share in the financial blockchain infrastructure sector as of 2025, expanding CBDC support services through its enterprise blockchain platform ‘Monachain,’ which enhances security and scalability.
Internationally, the U.S. Federal Reserve is accelerating its digital dollar research based on the successful operation of the FedNow system announced in September 2025. ‘Project Hamilton,’ jointly conducted by the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology (MIT), achieved a performance capable of processing 1.7 million transactions per second, significantly surpassing the average throughput of the Visa network.
From a technological perspective, noteworthy is the strengthening of international cooperation to ensure interoperability. The mCBDC Bridge project, led by the BIS, involves Hong Kong, Thailand, China, and the United Arab Emirates in building a cross-border CBDC transaction system. As of November 2025, the pilot transaction volume through this system reached a total of 2.2 billion dollars, achieving cost reductions of over 50% compared to existing international remittances and reducing transaction times from several hours to a few minutes.
With the advancement of blockchain technology, addressing new security threats in the CBDC sector is also emerging as a critical issue. As the development of quantum computing raises concerns about the vulnerability of existing encryption technologies, the application of post-quantum cryptography is recognized as an essential element. The quantum-resistant cryptographic algorithms standardized by the U.S. National Institute of Standards and Technology (NIST) in 2024 are gradually being introduced into CBDC systems, evaluated as key technologies ensuring CBDC security over the next 10-15 years.
Market analysts assess that the success of CBDCs depends not only on technical performance but also on user experience and ecosystem development. The relatively rapid spread of China’s digital yuan is attributed to its seamless integration with existing mobile payment ecosystems like Alipay and WeChat Pay, along with strong governmental policy support. In contrast, Western developed countries prioritize addressing concerns from civil society regarding privacy and financial privacy.
From an investment perspective, the valuation of blockchain companies related to CBDCs has risen significantly in 2025. The average price-to-earnings ratio (PER) of global blockchain technology companies is 35.2 times, significantly exceeding the average of 18.4 times for traditional IT service companies. Investors are particularly focused on companies with experience in building CBDC infrastructure, with related companies’ stock prices rising by an average of 42% compared to the beginning of 2025. Venture capital investments in the blockchain sector are also active, with the global blockchain startup investment volume reaching 14.7 billion dollars from January to November 2025, a 31% increase year-on-year.
In terms of regulatory environment, governments worldwide are accelerating the establishment of legal frameworks for CBDC adoption. In Korea, the ‘Digital Asset Basic Act’ passed by the National Assembly in June 2025 clarifies the legal status of CBDCs and presents basic principles for issuance and distribution. The European Union finalized the ‘Digital Euro Act’ in October 2025, legislating the issuance authority and privacy protection regulations for the digital euro. This regulatory clarity acts as a positive factor promoting investment and innovation in the private sector.
However, there are significant challenges to overcome in the process of CBDC proliferation. The biggest concern is the potential weakening of bank intermediation functions and the impact on financial stability. If CBDCs are widely used, there is a possibility that ordinary citizens may replace commercial bank deposits with central bank digital currencies, fundamentally changing banks’ funding structures. The International Monetary Fund (IMF) recommends using policy tools such as setting CBDC holding limits and differentiating interest rates to mitigate these risks.
Future Prospects and Investment Opportunities
As of the end of 2025, the CBDC sector is entering a full-fledged commercialization phase with significantly improved technological maturity. According to BIS forecasts, by 2030, CBDCs will be officially operated in economic zones accounting for 24% of global GDP, meaning approximately 1.5 billion people will use CBDCs regularly. The Asia-Pacific region is expected to lead CBDC adoption, with China, Japan, Korea, and Singapore forming the leading group.
In terms of technological innovation, the convergence of artificial intelligence (AI) and blockchain is emerging as a new trend. AI-based fraud detection systems, real-time risk assessment, and personalized financial services are being integrated into the CBDC ecosystem, simultaneously enhancing user experience and security. Additionally, automated micropayment systems through integration with the Internet of Things (IoT) are gaining attention. Automated parking fee payments for autonomous vehicles and real-time billing for smart home devices’ electricity usage are being implemented through CBDCs.
Environmental sustainability is also becoming an important driver of CBDC development. Criticism of the high energy consumption of traditional cryptocurrencies like Bitcoin has led to CBDCs being recognized as energy-efficient alternatives. China’s digital yuan is analyzed to reduce energy consumption by more than 70% compared to existing banking systems, contributing to the achievement of carbon neutrality goals by various governments.
From an investor’s perspective, investment opportunities related to CBDCs span various areas, including infrastructure development, security solutions, user interfaces, and additional service development. There is a surge in demand for CBDC-based financial service platforms for small and medium-sized enterprises and individual entrepreneurs. As previously underserved populations gain access to financial services through CBDCs, business models pursuing both social value and profitability through expanded financial inclusion are emerging.
In conclusion, CBDCs are driving a paradigm shift in the global financial system beyond mere technological innovation. As the maturity of blockchain technology improves, regulatory environments become clearer, and market participants actively invest, the CBDC ecosystem is rapidly expanding. Over the next five years, this sector is expected to sustain high growth with an annual average of over 25%, providing significant investment returns for companies that can capture both technological innovation and market opportunities. However, investment strategies need to carefully consider risks such as technological complexity, regulatory uncertainty, and potential conflicts with existing financial systems.
*The content of this article is for informational purposes only, and additional analysis and expert consultation are required for investment decisions.*
