In recent years, there have been rapid changes in how we use money. We once relied almost exclusively on physical notes and coins, but today digital payments, instant transfers, and even cryptocurrencies have become relevant in our daily lives.
This transformation has brought new challenges for central banks, which need to balance keeping up with innovation while maintaining the stability of financial systems. It is in this context that central bank–issued digital currencies (CBDCs, or Central Bank Digital Currencies) have emerged.
Unlike cryptocurrencies, such as Bitcoin, which operate in a decentralized manner without an official issuer, CBDCs represent the digital version of a national currency, backed and supported by the central bank. Some countries have already taken significant steps in this field: Nigeria was a pioneer in Africa, launching the e-Naira in October 2021.
China is one of the countries that has made the most progress, introducing the digital yuan, also known as e-CNY. Since 2014, the country has invested in research and development, and the e-CNY is now available in 29 cities: it is used to pay for public transport, distribute salaries to public employees, and for international events such as the Winter Olympics.
The European Union is also in the testing phase for launching the digital euro, with a project initiated in November 2023 and a planned rollout in 2026. The third phase of the progress report, published in July, shows advancements in creating a rulebook to harmonize digital payments across the Eurozone. The European Central Bank (ECB) has conducted tests with various participants and surveys with different consumer groups, including vulnerable populations and small merchants, to ensure that the digital euro is inclusive and addresses the concerns of the entire population.
With the increasing digitalization of money, it is essential that central banks keep pace with innovation.
Official digital currencies promise financial inclusion, lower transaction costs, greater payment system efficiency, and even improved traceability to combat money laundering and illicit financing.
Meanwhile, as central banks develop their digital currencies, millions of people worldwide turn to cryptocurrencies and stablecoins as an alternative store of value. In countries with chronic inflation and weak currencies, such as Argentina or Turkey, using crypto assets to preserve purchasing power has already become common practice. Bitcoin has been likened to “digital gold,” and stablecoins pegged to the dollar, such as USDT, serve as a refuge against currency devaluation.
In Mozambique, this discussion becomes even more interesting. The country faces heavy import dependence and challenges with financial inclusion. A large part of the population still lacks access to traditional banking services but uses mobile wallets for daily transactions—an important step toward digitalization. In this context, a potential CBDC implemented by the Bank of Mozambique could expand access to formal financial services, reduce transaction costs, and even bring more transparency to the system.
However, risks remain. A CBDC requires robust technological infrastructure, trust in institutional stability, and adequate levels of financial literacy. Additionally, during periods of currency instability, many Mozambicans may seek refuge in assets pegged to strong currencies or even cryptocurrencies, seeing them as a hedge against loss of purchasing power. This suggests that even with the arrival of an official digital currency, the competition between centralized stability (CBDC) and decentralized freedom (crypto assets) could intensify.
The trend points toward a scenario of coexistence between different forms of money. CBDCs have the potential to transform how we pay, save, and interact with the state, reinforcing the role of central banks in the digital era. Meanwhile, crypto assets will continue to play an important role as a store of value in economies marked by volatility and institutional distrust. In the case of Mozambique, the challenge will be twofold: ensuring that innovation promotes inclusion and stability while creating policies that provide enough confidence for the national currency—digital or physical—to remain a safe haven.
