Croatia CBDC Tracker

Croatia is currently in the research phase of its central bank digital currency (CBDC) development.

Note: This page is dedicated to the work done by the government in Croatia. However, Croatia is a member of the European Union and Eurozone. If the European Central Bank launches a CBDC (referred to as a digital euro), then this page will be changed to reflect that. Until then, the Eurozone page has notes about the development of the digital euro.

CBDC History and Development

In 2020, the Croatian National Bank published a piece on CBDCs. The authors ultimately said, “A lot of open questions and challenges remain and it is still unknown whether the benefits of the new CBDC would exceed the costs and risks. … In case of Croatia, having in mind current characteristics of the country's monetary system and the important role that cash still plays, the launching of a CBDC—a digital kuna—is neither economically nor strategically justified yet.”

In May 2021, Croatian National Bank official Linard Martinčević said, “There are a lot of open questions and challenges, and it is still not known whether the benefits of introducing a CBDC would outweigh the costs and risks. The development of payment systems and digital methods of conducting transactions certainly favors the idea of ​​introducing a CBDC, but it is a complex concept, so the introduction of a CBDC is not going to happen quickly.”

In June 2022, Croatian National Bank official Linard Martinčević said, “[One] of the major threats to its success could be the attractiveness of the CBDC, which may destabilise the financial system by stripping banks of their deposit base. If such disintermediation reduces banks' abilities to do one of their main activities, i.e. to provide credits, then we, as central bankers, would need to find a way to put the money back into the system. Whether directly, which is always politically sensitive, or indirectly by further expanding our balance sheets and potentially creating even more moral hazards. However, CBDC could be a valuable tool for fostering competitive, more resilient, innovative payment systems.”

In March 2023, Croatian National Bank deputy governor Sandra Švaljek said, “The decreasing use of cash is the main driver of CBDC development and the project of the digital euro in the euro area. … Our intention is not to replace cash but to supplement it with a widely accessible, inclusive and free for basic use digital form of money.”

In March 2024, Croatian National Bank governor Boris Vujčić opened an event on the digital euro saying, “The concept of central bank digital currency (CBDC) and the digital euro is a very interesting and challenging one, raising a number of questions that this conference aims to address. … To continue to meet the needs of its users, our common European currency has to evolve hand in hand with citizens’ wishes.”

Human Rights and Civil Liberties Concerns

Croatia earned an 84 out of 100 in Freedom House’s 2023 Freedom in the World report. Although a relatively high score, the country still experiences issues with corruption. The issuance or adoption of a CBDC in Croatia could worsen this issue. However, it must be said that the ability of the Croatian government to abuse a CBDC directly is debatable because the CBDC that would be used in Croatia would be provided by the European Central Bank—representing the European Union.

“While some progress has been made, official corruption—including nepotism, bribery, fraud, and patronage—remains a serious problem,” according to Freedom House. The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.