A survey by the Bank for International Settlements found that most of the world’s central banks are either developing CBDCs or conducting experiments to adopt them.
Central banks around the world are increasingly looking into the possibility of creating their own digital currency. They do not want to be left out of the bandwagon of this technology.
According to the results of a survey by the Bank for International Settlements (BIS) In the case of the United States, nine out of ten central banks around the world are exploring in some way the central bank digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies (CBDC).
The survey was conducted by BIS in 2021 but the results are out today.
It says in the introduction to the report:
“This report presents the results of a survey of 81 central banks about their participation in central bank digital currency currency is a medium of exchange that defines value. (CBDC) work, as well as their motivations and intentions with respect to CBDC issuance. Conducted in the fall of 2021, the survey also asked for central banks’ assessment of the use of stable currencies and other cryptocurrencies (or cryptoassets) in their jurisdictions”.
“Over the course of 2021, work on CBDCs gained further momentum. After Bahamas launched a retail CBDC (the Sand-Dollar) in 2020 Nigeria continued in 2021 with the issuance of eNaira With the Eastern Caribbean and China launching pilot versions of their respective DCash4 and e-CNY, there are probably more to come: a record participation of central banks in the survey (90%) are engaged in some form of CBDC work”.
The survey also found that more central banks are developing or testing a CBDC or a digital currency designed to be used by consumers that a retailer or a digital currency designed to be used by consumers that a CBDC wholesale, which is intended for banks.
El sondeo exploró el nivel de compromiso de los bancos en relación con la CBDC along with their motivations and intentions with respect to CBDC issuance.
More than half of the central banks surveyed are developing CBDC o “conducting concrete experiments”, according to the results. In addition, about 20% are developing or testing a CBDC retail, which is double the number of central banks working on a wholesale digital currency.
The report adds that central banks are actively exploring the CBDC as economies seek to strengthen their digital banking and payments infrastructure. From potentially improving financial inclusion to speeding up cross-border transfers, the CBDC Theoretically they hold a lot of promise, but with China leading the way in development and proof of a digital yuan, some governments around the world also see the CBDC as a move for monetary sovereignty.
Also, according to the CBDC from Atlantic Council, 87 countries representing more than 90% of the world economy are working on CBDC.
“On average, nearly six in 10 central bank respondents said this growth has accelerated their CBDC work.” says the report.
The jurisdictions represented in the BIS survey account an account is essentially a whose purpose is to track the financial activities of a specific asset/ for about 76% of the world’s population, and 56 of the central banks surveyed represent emerging and developing economies.
While central banks in the Bahamas, China and Nigeria have already issued or are piloting a retail CBDC, the survey found that other jurisdictions are likely to follow with 68% in the“futuro previsible”.
Questions about stablecoins and crypto
In addition to questions about the CBDC, the survey also asked central banks about stable currencies (cryptocurrencies linked to the value of other assets or currencies such as the U.S. dollar) and cryptocurrencies in general.
“Central banks differ in their expectations that stable currencies will grow and become widely used and accepted as a means of payment, depending on the type of stable currency.” said the report, adding that central banks seem to believe that stable coins backed by a single currency are much more likely to succeed as a payment method over other types of stable commodity-linked currencies or other cryptocurrencies.
Around 70% of central banks are investigating the potential impact of stable currencies on monetary and financial stability, while around a quarter are studying the use of cryptocurrencies.
Then and now
In 2019, the general manager of the Bank for International Settlements, Agustín Carstens, warned that caution should be exercised when considering the central bank’s digital currencies . At the time he said that central banks are currently “not having the courage” to venture into the unknown when it comes to issuing a central bank digital currency. He added that such a move could bring fundamental changes to both financial stability and the monetary system. Apparently the agency has already changed its mind.
In 2020, on the initiative of the BIS, a major group of central banks joined to jointly explore CBDCs specifically their potential use cases and the creation of digital currencies in their respective jurisdictions.
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