If you’re worried that a central‑bank digital currency (CBD‑C) could limit financial freedom, it helps to know which jurisdictions have chosen not to pursue a CBD‑C and what alternatives exist for establishing a secondary residence or citizenship.
Countries that tried and abandoned a CBD‑C
| Country | Timeline & Reason for Abandonment |
|---|---|
| Denmark | The Danish central bank explored a CBD‑C in 2016. After a year of research it concluded that the existing payments infrastructure already provided instant payments, that a retail CBD‑C would add little value, and that the associated costs, risks and potential damage to the private‑sector payment ecosystem were not justified. |
| Japan | The Bank of Japan released an initial report in 2020 and ran a proof‑of‑concept pilot in early 2021. By 2022 officials announced they would not issue a digital yen, citing risks to financial stability, a strong preference for cash, and the need for any public digital currency to coexist with private payment services. |
| Ecuador | Ecuador launched an electronic currency in 2014 to boost financial inclusion and reduce the need for the central bank to handle large amounts of cash. The program was active from 2015, reaching about half a million users, but was discontinued by 2018 amid growing skepticism about the CBD‑C model. |
Regions and countries that currently have no CBD‑C program
Central America
- Belize – No CBD‑C plans; relatively easy residency options.
- El Salvador – Adopted Bitcoin as legal tender alongside the US dollar; no CBD‑C.
- Costa Rica – No CBD‑C; offers straightforward residency permits.
- Panama – No CBD‑C; popular for its “friendly nations” visa and banking sector.
South America
- Venezuela – An inactive CBD‑C exists but is not operational; the country’s economic situation is volatile.
- Bolivia – No CBD‑C and limited immigration pathways.
Europe
- Poland – Actively monitoring CBD‑C developments but has ruled out pilots, stating current conditions do not justify a launch. Uses the złoty (PLN) and remains outside the eurozone.
- Serbia – No CBD‑C; offers relatively easy residence permits and a non‑EU currency (Serbian dinar).
- Bosnia & Herzegovina – No CBD‑C; residency can be obtained through investment or employment.
- Uzbekistan – No CBD‑C pilot; developing its own financial infrastructure.
Middle East
- Kuwait – No CBD‑C; high‑income economy with strict residency requirements.
Africa & Oceania (selected)
- Timor‑Leste (East Timor) – No CBD‑C; limited infrastructure.
- Papua New Guinea – No CBD‑C; remote and less developed financial system.
Caribbean (small sovereign states)
Many Caribbean nations do not have CBD‑C projects and some run citizenship‑by‑investment (CBI) programs, allowing investors to obtain citizenship within months after a qualifying contribution or real‑estate purchase. Examples include:
- Dominica
- St. Kitts & Nevis
- Antigua & Barbuda
These jurisdictions typically have limited exposure to global financial regulations and may offer more responsive governance.
Practical steps for building a “Plan B” against CBD‑C roll‑outs
- Identify residency‑friendly jurisdictions – Look for countries with clear, low‑cost residency pathways (e.g., Belize, Costa Rica, Panama, Serbia, Poland).
- Consider citizenship‑by‑investment – If speed and certainty are priorities, CBI programs in the Caribbean can grant a passport in a few months after a qualifying investment.
- Leverage dual citizenship – Holding an EU passport (e.g., through ancestry) can simplify travel and banking across Europe while keeping your primary residence elsewhere.
- Diversify financial holdings – Keep assets in multiple jurisdictions: a bank account in a stable, non‑CBD‑C country, physical gold, and, where appropriate, self‑custodied crypto stored offline.
- Assess political and economic stability – Prioritize nations with low corruption, reliable rule of law, and a track record of respecting property rights.
- Stay compliant with tax and reporting obligations – Even when diversifying, ensure you meet the reporting requirements of your home country (e.g., FATCA for US citizens).
Risks and caveats
- Political volatility – Some countries without CBD‑Cs (e.g., Venezuela) face severe economic or security challenges that may outweigh the benefit of avoiding a digital currency.
- Regulatory changes – Even nations currently without CBD‑C plans could adopt one later; continuous monitoring is essential.
- Residency requirements – Some jurisdictions demand physical presence, minimum income, or property ownership to maintain residency status.
- Banking access – Not all “CBD‑C‑free” countries have robust international banking services; due diligence on local banks is necessary.
By selecting a mix of countries that lack CBD‑C initiatives and securing appropriate residency or citizenship, individuals can mitigate the risk of future digital‑currency restrictions while preserving financial flexibility.
