In every ten central banks, nine of them are in the process of considering or developing central bank digital currencies (CBDCs). Stablecoins have accelerated the idea and emboldened the central banks to advance their CBDC focus, according to the Bank of International Settlement (BIS) survey.
BIS’s CBDC Survey
The Bank of International Settlement (BIS) did a survey and released a report known as “Gaining Momentum –Results of the 2021 BIS Survey on Central Bank Digital Currencies.” The report was released by Ilari Mattei, a financial market analyst, and Anneke Kosse, a senior economist.
The study was done in the autumn of 2021, and 81 central banks across the globe participated. According to the report, nine of every ten central banks are exploring central bank digital currencies (CBDCs), and more than 50% of respondents are experimenting with their application. To be specific, works on CBDCs have moved to more advanced stages.
The report explained that the emergence of stablecoins, the COVID-19 pandemic, and other cryptos have helped accelerate CBDC-related works. This is particularly evident in many developed economies where central banks emphasize that financial stability has become even more important, motivating their involvement in CBDC development.
Central Banks Targeting Retail CBDC for Short and Medium-Term
The crypto assets and stablecoins market grew rapidly in 2021. Six out of ten respondents indicated that this growth emboldened their focus on CBDC. It also spurred collaboration among central banks of different countries, especially in monitoring the emerging applications of crypto assets and defining the regulatory approaches to address financial risks.
In addition, many central banks indicated they are working on wholesale CBDs for cross-border payment efficiency. 2/3 of the central banks said the works on retail CBDC are at advanced stages and are likely to issue them in the short or medium term.
