Maldives CBDC Tracker

The Maldives is in the research phase of its central bank digital currency (CBDC) development. However, the case in the Maldives is unique because these developments appear to be led by the United Nations.

Current human rights and civil liberties concerns in the Maldives include corruption. 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.

CBDC History and Development

The United Nations published a CBDC study focused on the Maldives in September 2022. The report included the following items in its list of CBDC benefits: displacing the use of cash, reducing the grey economy, and improving financial inclusion. The risks named in the report included disrupting the financial system, increasing surveillance, and exposing cyber vulnerabilities.

In June 2023, the United Nations provided a regulatory framework for a CBDC in the Maldives.

In October 2023, the United Nations reported that the Maldives Monetary Authority had been working to develop a regulatory sandbox to test CBDC designs.

Human Rights and Civil Liberties Concerns

The Maldives earned a 43 out of 100 in Freedom House’s 2024 Freedom in the World report. As Freedom House noted in the report, corruption is a significant issue for the Maldives. The issuance or adoption of a CBDC in the Maldives could worsen these issues.

“Corruption remains endemic at all levels of government,” according to Freedom House. “The absence of transparency and the impunity granted to those who engage in corrupt practices are seen as significant obstacles to eliminating corruption.” 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.