41% of Central Banks Expect Operational CBDC by 2028
A recent study by the Official Monetary and Financial Institutions Forum (OMFIF) reveals that 41% of central banks expect to have an operational central bank digital currency (CBDC) by 2028. Additionally, close to 70% of respondents hope to deploy a CBDC within the next decade. However, 17% of central banks surveyed have ruled out launching a CBDC.
Positive Shift in Sentiment Towards CBDCs
The OMFIF survey also found that sentiment towards CBDCs is shifting positively, with 30% of respondents becoming more inclined to issue a digital currency in the past year. This change suggests that the exploratory work and feasibility studies conducted by central banks are yielding fruitful results.
Different Motivations for CBDC Deployment
The motivations for wanting to issue CBDCs vary among central banks. The majority of emerging market respondents aim to improve financial inclusion, while many developed market central banks view CBDCs as a defensive measure to preserve monetary sovereignty. Only 20% of respondents cite the efficiency of payment systems as their primary motivation.
Concerns and Collaboration in CBDC Adoption
The survey highlights different concerns among central banks. Developed markets express concern about the low adoption of CBDCs and the potential for bank disintermediation. In contrast, emerging markets prioritize cybersecurity as their main concern. As CBDCs become more prevalent, collaboration in areas such as know-your-customers capacity, wallet provision, and payment processing is gaining traction. Additionally, the concept of cross-border CBDC networks is becoming popular.
Hot Take: Central Banks Embrace the Future of Currency
With over 40% of central banks expecting to have an operational CBDC within the next decade, the future of currency is undeniably digital. The positive shift in sentiment towards CBDCs indicates that central banks are recognizing the potential benefits of digital currency issuance. However, concerns about adoption and security must be addressed for successful implementation. As central banks explore the possibilities of CBDCs, collaboration between the public and private sectors will be crucial in shaping the future of digital currency.
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