Survey Finds Majority of Central Banks Engaged in Digital Currency Work
According to a survey conducted by the Bank for International Settlements (BIS), 93% of central banks worldwide are currently involved in digital currency work. The BIS, representing 63 central banks and 95% of the global economy, also predicts that approximately 15 retail central bank digital currencies (CBDCs) could be in circulation by the end of the decade. The study revealed that nine central banks are “very likely” to issue a CBDC for wholesale use in financial markets within the next six years. Major jurisdictions such as India, the U.K., and the European Union are actively exploring the possibility of issuing a digital version of their fiat currencies.
Key points from the survey include:
– The majority of central banks are now undertaking CBDC work, with a particular focus on helping unbanked individuals in emerging economies.
– Stablecoins and other crypto assets are currently seldom used for payments outside of the crypto ecosystem.
– The enthusiasm for CBDCs may have cooled following the 2022 crypto crash, resulting in a greater number of central banks expressing reluctance to issue a CBDC in the near future.
– Several countries, including the Bahamas, Eastern Caribbean, Jamaica, and Nigeria, have already implemented retail CBDCs.
– The potential use of a digital yuan in China has raised concerns about state surveillance.
In conclusion, the survey highlights the widespread engagement of central banks in digital currency work and the growing interest in CBDCs. While there are concerns and uncertainties surrounding the use of digital currencies, particularly in terms of privacy and surveillance, the study suggests that retail CBDCs could complement existing payment methods in the future.
Hot Take
The increasing involvement of central banks in digital currency work reflects the growing recognition of the potential benefits and opportunities offered by CBDCs. However, the survey also highlights the need for careful consideration of issues such as privacy and surveillance to ensure the successful implementation and adoption of digital currencies.
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