According to a survey done by the Bank for International Settlements in 2021, more than half of central banks are creating CBDCs or conducting real experiments.
According to the results of a poll done by the Bank for International Settlements, nine out of ten central banks around the world are investigating central bank digital currencies (CBDC) (BIS).
The poll also discovered that more central banks are developing or testing a retail CBDC, which is a digital currency intended for use by consumers, as opposed to a wholesale CBDC, which is intended for use by banks.
The results of a survey of 81 central banks performed in autumn 2021 were presented in a report issued on Friday by BIS, an umbrella body for central banks. The poll investigated banks’ level of involvement in CBDC activities, as well as their motivations and plans towards CBDC issuance. BIS is owned by 63 central banks representing approximately 95% of global GDP.
According to the findings, more than half of the polled central banks are creating CBDCs or “performing concrete experiments.” Around 20% are working on or testing a retail CBDC, which is more than double the number of central banks working on a wholesale digital currency.
Central banks throughout the world are aggressively investigating CBDCs as nations seek to bolster their digital payments and banking systems. CBDCs theoretically hold many promises, from potentially enhancing financial inclusion to speeding up cross-border payments, but with China leading the way in building and testing a digital yuan, several governments around the world see CBDCs as a push for monetary sovereignty.
BIS signaled to central banks throughout the world in September 2021 to begin working on CBDCs. According to the Atlantic Council’s CBDC tracker, 87 countries constitute more than 90% of the global economy.
“On average, nearly six out of ten respondent central banks stated that this expansion had expedited their work on CBDCs,” according to the research.
The BIS survey jurisdictions comprise about 76 percent of the world’s population, with 56 of the questioned central banks representing emerging and developing countries.
While the Bahamas, China, and Nigeria have either issued or are in the process of issuing a retail CBDC, the study revealed that other jurisdictions will likely follow with 68 percent in the “foreseeable future.”
In addition to CBDCs, central banks were asked about stablecoins (cryptocurrencies tied to the value of other assets or currencies such as the US dollar) and cryptocurrencies in general.
“Depending on the type of stablecoin, central banks differ in their expectations that stablecoins will scale up and become widely used and accepted as a means of payment,” the report said, adding that central banks appear to believe stablecoins backed by a single currency are far more likely to succeed as a method of payment than other types of stablecoins pegged to commodities or other cryptocurrencies.
Around 70% of central banks are investigating the possible impact of stablecoins on monetary and financial stability, while a quarter are investigating the use of cryptocurrencies.