Mongolia CBDC Tracker

CBDC Information

CBDC Status

Research

Economic Information

GDP

$16,810,883,361

Population

3,447,157

Government Information

Form of Government

Electoral Democracy

Rule Of Law

5.08/10

Freedom Rankings

Cato and Fraser Human Freedom Index:

7.61/10

Freedom House Index:

8.4/10

Reporters Without Borders Freedom Index:

5.13/10

Mongolia is in the research phase. Bank of Mongolia governor Byadran Lkhagvasuren said the central bank is taking “proactive steps to explore the potential benefits” of issuing a CBDC.

CBDC History and Development

In 2019, Bank of Mongolia official A. Jantsankhorloo published a paper on the central bank’s website that explores the case for CBDCs. The paper takes the stance that a CBDC is needed because cash usage had decreased in Mongolia and a CBDC could offer negative interest rate policies and stimulus payments.

During a 2023 interview, Bank of Mongolia governor Byadran Lkhagvasuren said, “The Bank of Mongolia is taking proactive steps to explore the potential benefits of a Central Bank Digital Currency (CBDC) through a dedicated project.” He added, “This effort can provide an additional payment instrument and infrastructure for the public in an environment of declining cash usage.”

In 2024, the Bank of Mongolia hosted a meeting where a presentation on CBDCs was given.

Human Rights and Civil Liberties Concerns

Mongolia earned an 84 out of 100 in Freedom House’s 2023 Freedom in the World report. When it comes to the issuance or use of a CBDC, the most relevant issue is the persistence of government corruption. A CBDC could worsen this issue.

“Corruption, which is endemic in Mongolia, is widely perceived to have worsened in recent years, particularly with respect to state involvement in the mining sector,” 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.