There are a number of headwinds facing CBDCs, namely concerns regarding privacy and security.
Active central bank digital currencies may be farther away than many think, as a number of factors — including their alleged threat to privacy — hinder growth.
Harry Halpin, CEO of Nym, a privacy infrastructure firm, told Cointelegraph that there are large and rightful privacy concerns with CBDCs: Trezor analyst Lucien Bourdon told Cointelegraph that the sentiment in the U.K. survey is shared worldwide: cryptocurrency projects and exploring digital currency themselves through CBDCs. This was evident from the surge in CBDC projects in 2020.
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