CBDC Success Questioned: ‘Costly Fiat Copy,’ Says Ex-Binance Director

The global push for national digital currencies, known as Central Bank Digital Currencies or CBDCs, continues despite varying degrees of success. However, a former executive from cryptocurrency giant Binance offers a critical perspective, labeling these initiatives as expensive imitations rather than true fintech breakthroughs. The promise of a revolutionary new form of Digital Currency seems, for now, unfulfilled.

Why CBDCs Are Seen as ‘Costly Fiat Copies’

Olga Goncharova, former director of government relations at Binance CIS and current CEO at Rizz Go, suggests that while CBDC projects haven’t outright failed, they haven’t lived up to their initial hype. Speaking at the Blockchain Forum in Moscow, she stated, “CBDCs were conceived as a technological breakthrough, but so far they look like expensive imitations of existing traditional fiat currencies that citizens and businesses already use through online banking and payment apps.”

According to Goncharova, these modern digital currency initiatives have yet to offer users tangible added value compared to established payment methods. They replicate the function of moving traditional money electronically but often lack the innovative features or efficiency gains initially anticipated, leading to the perception of them being merely ‘costly fiat copies’.

The Global Struggle for CBDC Adoption

Despite significant investment and government backing, mass CBDC adoption remains a major challenge worldwide. Goncharova notes that no jurisdiction has yet achieved widespread public use of retail CBDCs.

Even in China, home to one of the most advanced projects, the Digital Yuan, adoption figures are reportedly minimal within the broader payment ecosystem. Reports indicate struggles despite active government promotion, with some pointing to setbacks like the reported expulsion of a key figure in China’s CBDC development.

Different Nations, Different Digital Currency Goals and Challenges

Each country pursuing a Central Bank Digital Currency often has unique motivations, facing distinct hurdles:

• European Union: The focus is heavily on strategic autonomy. The Digital Euro is viewed primarily as a tool to reduce reliance on international payment giants like Visa and Mastercard, rather than a response to consumer demand. However, the project faces significant challenges, including concerns from banks about market share and uncertainty regarding the underlying technology, such as whether it will utilize blockchain.

• Russia: Unlike the EU, Russia’s motivation for a Digital Currency is less about reducing foreign dependence and more about increasing the efficiency of internal settlements. The digital ruble project has undergone multiple trials since 2022 but has seen repeated launch delays. Its mass adoption timeline was recently pushed back, with the Finance Minister suggesting a commercial bank rollout in the latter half of 2025. The project’s future success hinges on clearly defined tasks and demonstrating practical value for users and the economy.

These examples highlight that while the pursuit of national digital currencies is global, the rationale and progress vary significantly, often encountering resistance or technical indecision.

Conclusion: The Path Ahead for Central Bank Digital Currencies

The journey for Central Bank Digital Currency projects has been more challenging than initially envisioned. As Olga Goncharova points out, they currently resemble expensive digital versions of existing fiat rather than innovative fintech solutions. While countries like China, the EU, and Russia continue their efforts with the Digital Yuan, Digital Euro, and digital ruble respectively, they grapple with issues of adoption, technical implementation, and proving their value proposition to citizens and businesses. The future success of CBDCs remains uncertain, contingent on overcoming these significant hurdles and potentially finding a clearer purpose beyond being just a ‘costly fiat copy’.