Malta CBDC Tracker

Malta is currently in the research phase. Unlike some other members of the European Union, Malta appears to be largely deferring to the European Central Bank’s work on its CBDC (referred to as the digital euro). The Central Bank of Malta provides some information, but it is all predicated on the European Central Bank’s work.

Note: This page is dedicated to the work done by the government in Malta. However, Malta 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 2022, the Central Bank of Malta introduced a webpage describing the development of the digital euro. The page says, “In this new era, the creation of a digital euro would guarantee that citizens in the euro area can maintain free access to a simple, safe, trusted and universally accepted means of payment.”

In 2023, Central Bank of Malta deputy governor Alexander Demarco delivered a presentation on the digital euro. Deputy governor Demarco walked through the investigation phase, legislative proposals, and preparation phase to showcase with the digital euro development currently sits.

In October 2023, the Central Bank of Malta hosted the 17th Dynare Conference where CBDCs were one of the topics covered over the two days of presentations.

Human Rights and Civil Liberties Concerns

Malta earned an 89 out of 100 in Freedom House’s 2023 Freedom in the World report. Although a relatively high sore, Mala still experiences issues with corruption. The issuance or adoption of a CBDC in Malta could worsen this issue. However, it must be said that the ability of the government in Malta to abuse a CBDC directly is debatable because the CBDC that would be used in Malta would be provided by the European Central Bank—representing the European Union.

According to Freedom House, “Anticorruption efforts are weak, and senior government officials and businesspeople have been linked to corruption and influence peddling in recent years.” 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.