In 2022, a survey by the Bank for International Settlements (BIS) showed that 93% of central banks worldwide were working on digital currencies.
A survey conducted by the Bank for International Settlements (BIS) suggests that by the end of this decade, approximately 15 retail central bank digital currencies (CBDCs) could be in circulation globally. This indicates a growing trend towards the introduction of digital currencies by central banks worldwide.
BIS: 9 Central Banks Likely to Launch Wholesale CBDCs in 6 Years
A survey conducted by BIS, representing 63 central banks globally, reveals that nine central banks have expressed a strong likelihood of issuing wholesale Central Bank Digital Currencies (CBDCs) for financial markets within the next six years.
The study also highlights that among the 86 central banks surveyed, 93% are actively engaged in CBDC initiatives. Major jurisdictions like India, the U.K., and the European Union are seriously exploring the possibility of introducing digital versions of their fiat currencies.
Progress in CBDC development has continued globally, especially in emerging economies, as it is perceived as a means to assist the unbanked population. According to the report, if retail CBDCs are introduced, they are expected to coexist and complement existing domestic payment methods.
BIS: Limited Use of Crypto Assets for Non-Crypto Payments
According to the BIS survey, stablecoins and other crypto assets are rarely utilized for payments beyond the crypto ecosystem. The most common applications are cross-border remittances and consumer purchases.
The previous BIS survey from May 2022 highlighted that the rapid growth of the private crypto market prompted central banks to explore their options.
However, enthusiasm may have waned after the 2022 crypto crash. The study reveals an increase in the number of central banks indicating reluctance to issue a CBDC in the near future, with fewer remaining undecided.
Central Banks Actively Considering Digital Currencies
Central banks around the world are actively exploring the implementation of digital currencies. The Bank of England has stated the potential need for a digital pound, while the European Commission has introduced a bill to support a digital euro. Additionally, the U.S. Treasury is examining methods to ensure privacy in digital transactions.
Countries like the Bahamas, Eastern Caribbean, Jamaica, and Nigeria have successfully implemented retail Central Bank Digital Currencies (CBDCs).
However, the pilot programs of China’s digital yuan have sparked concerns regarding the potential for state surveillance through the technology.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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