Croatia CBDC Tracker

Croatia is currently in the research phase. A report by the Croatian National Bank explores the topic, but 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.”

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.

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.