A brand new report from the Venom Basis, an Abu Dhabi-based fintech, claims the worldwide monetary system is present process its quickest transformation in historical past, with bodily foreign money on a path to changing into “largely out of date” inside 36 months.
The research, “The Finish of Conventional Cash: How Asia and MENA Are Rewriting World Finance,” finds that 137 nations, representing 98 per cent of worldwide GDP, are actually actively creating central financial institution digital currencies (CBDCs). Main launches are scheduled between 2025 and 2028, with the UAE’s Digital Dirham set to launch within the fourth quarter of 2025.
The analysis synthesises knowledge from the Financial institution for Worldwide Settlements (BIS), IMF, World Financial institution, and over 20 central banks. It forecasts that by 2028, the stablecoin market will attain $2trillion, money transactions will likely be a minority in main economies, and correspondent banking volumes will decline by over 40 per cent.
Asia and MENA lead by way of regulatory readability
The report highlights that whereas Western nations have debated frameworks, monetary hubs in Asia and MENA—particularly Singapore, the UAE, Hong Kong, Bahrain, and Japan—have moved forward by establishing clear licensing regimes for digital property.
This regulatory readability has enabled fast innovation and adoption. China’s digital yuan (e-CNY) has already processed $986billion in transactions, whereas circulation of India’s digital rupee grew 334 per cent in a single 12 months. The UAE’s Digital Dirham is slated for a This fall 2025 launch, and Russia’s digital ruble is anticipated to enter wide-scale adoption in 2025.
Stablecoin market projected to hit $2tn by 2028
The research tasks that the personal stablecoin market will develop from $246billion right now to $2trillion inside three years. This progress is underpinned by a wave of latest laws launched in 2024 and 2025, together with the EU’s MiCA, the US GENIUS Act, and new frameworks throughout the UAE, Hong Kong, Japan, Singapore, and Thailand.
The report notes that B2B stablecoin transactions already exceed $36billion yearly, signalling sturdy institutional adoption for cross-border funds and provide chain finance.
Challenge mBridge threatens US greenback dominance
A key driver of the shift away from conventional rails is the development of cross-border CBDC platforms, most notably Challenge mBridge. The platform, which connects China, the UAE, Thailand, Hong Kong, and Saudi Arabia, reached minimal viable product (MVP) standing in mid-2024.
The challenge bypasses the SWIFT messaging system and, in response to the report, may eradicate $120billion in annual correspondent banking prices by settling transactions in seconds. The challenge’s development has attracted widespread world curiosity, with 26 central banks, together with the South African Reserve Financial institution, now taking part as observers.
The report identifies this as a part of a broader geopolitical pattern, with nations actively searching for to cut back their dependence on dollar-based infrastructure. It warns that the effectiveness of sanctions could decline as different fee rails proliferate.
An “rapid operational crucial”
The research concludes that digital foreign money integration is now not a medium-term strategic query however an “rapid operational crucial” for monetary establishments. It warns that business banks face disintermediation as central banks supply direct digital foreign money entry, whereas fee processors “confront obsolescence” from peer-to-peer blockchain settlement.
The report identifies cybersecurity threats, privateness issues, and monetary stability dangers as main challenges, with regulatory fragmentation complicating cross-border interoperability. It requires rapid worldwide coordination on requirements, stating that the frameworks developed in 2025-2026 will “form financial infrastructure for many years.”
