5 hours Central bank digital currencies are "an expensive copy of cash," and not a success in fintech yet

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Central bank digital currencies are "an expensive copy of cash," and not a success in fintech yet: former Binance executive

After the U.S. rejected the idea of a central bank digital currency following Trump's election, it remains unclear whether other countries have achieved any success with their national digital currency projects.

The U.S. rejection of central bank digital currency has not halted the progress of digital central bank currencies globally, but their success has been questioned so far, according to a former Binance executive.

Global CBDC projects have not failed, but they have also not become what was expected of them, according to Olga Goncharova, CEO of Rizz Go consulting and former director of government relations at Binance CIS.

Goncharova told Cointelegraph at the Blockchain Forum in Moscow: "Central bank digital currencies were designed as a technological breakthrough, but so far they seem like an expensive imitation of the existing fiat currencies that citizens and businesses already use through online banking and payment apps."

Olga Goncharova during a discussion session on the geopolitical landscape of Web 3 at Blockchain Forum 2025 on April 23. Source: Blockchain Forum

And while some innovations similar to central bank digital currencies date back to the 1990s, recent initiatives have yet to offer users any real added value compared to traditional payment channels, she said.

CBDC leaders like China struggle with adoption

Goncharova claimed that "it has become clear today that the expectations around central bank digital currencies were exaggerated," adding that none of the jurisdictions worldwide have succeeded in the mass adoption of retail central bank digital currencies.

She added that "even in China, where the digital yuan project is moving longer and more actively than others, its share in the payment system remains minimal," referring to multiple reports online indicating that the Chinese digital central bank currency is struggling amid slow adoption.

Source: Mercator Institute for Chinese Studies

With the start of CBDC research in the early stages in China in 2014, the Chinese digital yuan became known as one of the largest CBDC projects worldwide, offering an electronic version of the Chinese yuan dedicated to online and offline transactions.

Related: China sells seized cryptocurrencies to supplement its treasury as the economy slows: report

The Chinese government has been actively promoting the use of the digital yuan. However, some reports announced the failure of the Chinese digital project by late 2024, referring to the fall of Yao Qian, the first director of the Chinese central bank digital currency development. Last year, reports indicated that he was removed from his position by the government.

The European Union pushes for the digital euro to achieve independence

Goncharova added that each country has its reasons for pursuing a central bank digital currency, noting that the European Union has been pushing for the digital euro project to protect its financial independence.

She added that "the European Union views the digital euro as a tool for strategic independence more than a response to market demand," noting that its goal is to reduce reliance on giant payment companies like Visa and Mastercard.

Source: Reuters

However, efforts to create a comprehensive European payment system have faced serious challenges, such as banks' concerns about market share as well as adoption difficulties.

Goncharova stated that "the European Central Bank has not yet decided whether the digital euro will operate on blockchain technology, as it does not see compelling use cases for programmability and points to technological risks."

Russia delays the launch of the digital ruble

Russia has emerged as one of the most active jurisdictions in the global CBDC race, but it has not yet launched its digital currency, which has been in multiple trials since early 2022.

After several delays in the launch, the digital ruble may be postponed again as Bank of Russia Governor Elvira Nabiullina announced in February that the mass adoption of the digital ruble would occur later than planned.

Russia, cash, Binance, stablecoin, central bank digital currency

A discussion session at the Blockchain Forum 2025 in Moscow. Source: Blockchain Forum

Meanwhile, Finance Minister Anton Siluanov recently claimed that the digital ruble for commercial banks is scheduled to be launched in the second half of 2025.

Related: The Russian stable ruble: An executive lists 7 features of the "Tether version"

Goncharova told Cointelegraph: "In Russia, there is no urgent need to reduce reliance on foreign payment systems as in the European Union," adding:

The digital ruble is seen as a tool to increase the efficiency of domestic settlements. The project is still in the testing phase. Its development will depend on the clarity of task formulations and their practical feasibility for users and the economy.

While Russia has delayed issuing its digital ruble, some officials recently called for the government to create stablecoins linked to the ruble, which aligns with U.S. efforts in the stablecoin space.

While several stable ruble coins have already been launched, it remains to be seen whether the initiatives can compete with giants like Tether's USDt.