Time for piloting CDBC in Bangladesh

In the era of massive technological diffusion, digital transformation, and aggressive cashless transactions, Bangladesh has been in a strong position. Online banking, digital banking and mobile banking through mobile apps are growing faster than ever before. Bangladesh is also relentless in its digital push, keeping pace with its global peers. Currently, Central Bank Digital Currency (CBDC) is a global phenomenon.
However, Bangladesh is still lagging in its conceptualisation of this timely issue. What is CBDC actually? Central Bank Digital Currency (CBDC) is a digital form of a country's official currency, issued and regulated by its central bank. It is a legal tender like physical cash, but it exists electronically.
The countries already piloting the CBDC scheme include China, which is the world's first to introduce its own digital currency. Others in the trend are the Bahamas, India, South Korea, Australia, Brazil, Japan, Nigeria, Sweden, Ukraine and the United States. Several countries are also considering adopting CBDCs.
The CBDC is the next big thing in Bangladesh as the young demographic, particularly Gen-Z, constitutes an estimated 40% or more than 65 million of the country's total population as tallied in 2025. Gen-Z members are, therefore, the prime target for the transaction of CBDC as they are computer literate, technologically savvy and digitally smart in using the currency in question.
Bangladesh can pilot the CBDC by introducing a platform to run the model currency scheme through a select group of commercial banks. At the initial stage, the central bank may issue digital currency to banks for the conversion of clients' hard currency for a period of time (say one year). Once paper currency is converted to digital currency, there is no scope to revert to paper currency.
The CBDC needs to be in circulation alongside paper currency, including cash and settlement accounts, so that all bank accounts work in sync with paper currency. It should not force any replacement; rather, it should be in the financial ecosystem as long as there is a public demand for the CBDC.
After piloting is complete, the digital currency will be converted back to hard currency. Only then will the project be duly evaluated for any resilient decision-making in future transactions involving digital currency.
For this, adequate awareness should be raised to sensitise them to the importance of the CBDC. Tools like social media, the mass media, and the engagement of banking stakeholders in workshops, seminars and symposia.
Another major reason for piloting the CBDC is to save on the cost of printing money in Bangladesh, which varies by denomination: a Tk 1,000 note costs around Tk 5.0 and a Tk 500 note about Tk 4.70 as of March 2025, according to the Security Printing Corporation (Bangladesh) Ltd.
On the other hand, lower denominations are less expensive, with Tk 10, Tk 20 and Tk 50 banknotes costing Tk 1.50 each to print. The total annual cost for printing all denominations is estimated at Tk 5.0 billion.
Although the piloting of CBDC is in its infancy in Bangladesh, but time is now to conceptualise this issue to save a staggering amount of the printing cost of paper currency. Even the cost of maintaining vaults to store money can be reduced. At the same time, the need for manpower to get such monetary activities done can be easily dispensed.
Again, the cost involved in taking hard currency to different booths is also not insignificant. Once the CBDC is put in place, a significant amount of money can be saved to support the growth of the national economy and the harmonious development of the country.
Finally, a pilot project involving CBDC may be a successful outcome that can be a medium of exchange in the context of electronic transformation and that will ultimately help cut billions as costs in a single calendar year.

Obaidur Rahman FCA is a managing partner of C-Net (Consultant Network). obaidur126@yahoo.com