Nine out of 10 central banks globally are exploring central financial institution digital currencies (CBDCs), based on the newest survey by the Bank of International Settlements (BIS). Furthermore, “the emergence of stablecoins and other cryptocurrencies have accelerated the work on CBDCs.”
BIS Central Bank Digital Currency Survey
The Bank of International Settlements (BIS) revealed a report final week titled “Gaining momentum — Results of the 2021 BIS survey on central bank digital currencies.” The report is authored by the financial institution’s senior economist Anneke Kosse and monetary market analyst Ilaria Mattei.
The BIS CBDC survey was carried out in autumn 2021 with the participation of 81 central banks. The report describes:
Nine out of 10 central banks are exploring central financial institution digital currencies (CBDCs), and greater than half are actually growing them or operating concrete experiments. In explicit, work on retail CBDCs has moved to extra superior phases.
The authors defined that each the Covid-19 pandemic and “the emergence of stablecoins and other cryptocurrencies have accelerated the work on CBDCs.” This is particularly true in “advanced economies, where central banks say that financial stability has increased in importance as a motivation for their CBDC involvement,” they added.
Noting that “the year 2021 was characterized by the strong growth of the cryptoassets and stablecoin market,” the report states, “On average, almost six out of 10 respondent central banks said that this growth has accelerated their work on CBDCs.” The authors continued:
This has additionally spurred collaboration between central banks to watch the implications of cryptoassets and stablecoins and to coordinate regulatory approaches to include their dangers to the monetary system.
In addition, many central banks revealed that they’re engaged on wholesale CBDCs to enhance cross-border fee effectivity whereas greater than two-thirds stated they’re prone to subject a retail CBDC “in either the short or medium term.”
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