March 27, 2024
Altcoins News

BIS Survey Reveals Over 90% of Central Banks Exploring CBDCs

A recent survey conducted by the Bank for International Settlements (BIS) revealed that an overwhelming 93% of central banks are actively engaged in researching central bank digital currencies (CBDCs). By 2030, it is projected that there could be a total of 15 retail CBDCs and 9 wholesale CBDCs in circulation.

The survey, which involved 86 central banks, occurred from October to December 2022 and provided insights into their progress and motivations regarding CBDC development. The results indicate that more than half of the world’s central banks are either experimenting with or working on CBDC pilot projects. Of these, nearly a quarter have already begun piloting their retail CBDC initiatives, while the number of wholesale CBDC projects remains relatively low.

In terms of geographical distribution, emerging markets and developing economies are leading the way in CBDC adoption. These nations account for almost double the share of advanced economies when it comes to piloting both retail (29%) and wholesale (16%) CBDCs. The primary motivations driving both types of economies are centered around financial stability and improving cross-border payment efficiency. However, developing countries tend to have a stronger emphasis on financial inclusion as a driving force.

The survey also found that the proportion of central banks likely to issue a retail CBDC within the next three years has increased from 15% to 18% since 2022. However, a significant majority of central banks (68%) still express their lack of readiness to issue a retail CBDC in the near future.

Presently, only four CBDCs are currently in circulation, namely those of the Bahamas, the Eastern Caribbean, Jamaica, and Nigeria. However, based on the responses of central bankers, the survey predicts that by the end of this decade, there will be a total of 15 retail CBDCs and nine wholesale CBDCs that will be operational.

Notably, the Reserve Bank of India recently announced ongoing discussions with 18 central banks worldwide regarding the potential for cross-border payments using its CBDC, the “digital rupee.” Furthermore, the Federal Reserve Bank of New York’s Innovation Center successfully completed a proof-of-concept for a regulated liability network supporting a CBDC. This development took place in July.

Image by wavebreakmedia_micro on Freepik

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