A new report from the Venom Foundation, an Abu Dhabi-based fintech, claims the global financial system is undergoing its fastest transformation in history, with physical currency on a path to becoming “largely obsolete” within 36 months.
The study, “The End of Traditional Money: How Asia and MENA Are Rewriting Global Finance,” finds that 137 countries, representing 98 per cent of global GDP, are now actively developing central bank digital currencies (CBDCs). Major launches are scheduled between 2025 and 2028, with the UAE’s Digital Dirham set to launch in the fourth quarter of 2025.
The research synthesises data from the Bank for International Settlements (BIS), IMF, World Bank, and over 20 central banks. It forecasts that by 2028, the stablecoin market will reach $2trillion, cash transactions will be a minority in major economies, and correspondent banking volumes will decline by over 40 per cent.
The report highlights that while Western nations have debated frameworks, financial hubs in Asia and MENA — specifically Singapore, the UAE, Hong Kong, Bahrain, and Japan — have moved ahead by establishing clear licensing regimes for digital assets.
This regulatory clarity has enabled rapid innovation and adoption. China’s digital yuan (e-CNY) has already processed $986billion in transactions, while circulation of India’s digital rupee grew 334 per cent in one year. The UAE’s Digital Dirham is slated for a Q4 2025 launch, and Russia’s digital ruble is expected to enter wide-scale adoption in 2025.
The study projects that the private stablecoin market will grow from $246billion today to $2trillion within three years. This growth is underpinned by a wave of new regulations introduced in 2024 and 2025, including the EU’s MiCA, the US GENIUS Act, and new frameworks across the UAE, Hong Kong, Japan, Singapore, and Thailand.
The report notes that B2B stablecoin transactions already exceed $36billion annually, signalling strong institutional adoption for cross-border payments and supply chain finance.
A key driver of the shift away from traditional rails is the advancement of cross-border CBDC platforms, most notably Project mBridge. The platform, which connects China, the UAE, Thailand, Hong Kong, and Saudi Arabia, reached minimum viable product (MVP) status in mid-2024.
The project bypasses the SWIFT messaging system and, according to the report, could eliminate $120billion in annual correspondent banking costs by settling transactions in seconds. The project’s advancement has attracted widespread global interest, with 26 central banks, including the South African Reserve Bank, now participating as observers.
The report identifies this as part of a broader geopolitical trend, with nations actively seeking to reduce their dependence on dollar-based infrastructure. It warns that the effectiveness of sanctions may decline as alternative payment rails proliferate.
The study concludes that digital currency integration is no longer a medium-term strategic question but an “immediate operational imperative” for financial institutions. It warns that commercial banks face disintermediation as central banks offer direct digital currency access, while payment processors “confront obsolescence” from peer-to-peer blockchain settlement.
The report identifies cybersecurity threats, privacy concerns, and financial stability risks as major challenges, with regulatory fragmentation complicating cross-border interoperability. It calls for immediate international coordination on standards, stating that the frameworks developed in 2025-2026 will “shape monetary infrastructure for decades.”
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