Hungary Tentatively Exploring CBDC Launch
BUDAPEST, HU – The Hungarian Central Bank is exploring the possibility of launching a central bank digital currency (CBDC) to help the unbanked population. Anikó Szombati, Chief Digital Officer of the Hungarian Central Bank, stated at the Official Monetary and Financial Institutions Forum that there is no urgent need for a large-scale retail CBDC. The bank would like to remain at the forefront of CBDC research.
As an EU member, Hungary is obliged to join the euro, but it has yet to set a date for abandoning its currency, the forint. However, many European authorities, including central banks responsible for the pound, euro, and Swedish krona, are actively exploring whether to issue their currencies in digital form.
For Hungary, the possibility of launching a CBDC is a way to get more people into the financial system, especially since 13% of Hungarian adults do not have bank accounts.
Szombati stated that when considering CBDC, the bank must identify its motivation based on either severe market failure or a strong policy objective. In this case, helping the unbanked is a potential incentive.
