- A recent study from the Bank for International Settlements (BIS) highlights a significant shift towards Central Bank Digital Currencies (CBDCs).
- Nearly all central banks surveyed are actively engaged in CBDC exploration, indicating a global trend in digital currency developments.
- The BIS underscores that wholesale CBDCs might see faster adoption compared to retail CBDCs within the next decade.
Central banks worldwide are increasingly focusing on digital currency initiatives, with a notable emphasis on wholesale CBDCs expected to emerge by the end of the decade.
BIS Survey: Majority of Central Banks Engaging in CBDC Research
A comprehensive survey conducted by the Bank for International Settlements (BIS) reveals that a significant majority of central banks are delving into the realm of Central Bank Digital Currencies (CBDCs). The survey encompasses responses from 86 central banks, with a staggering 94% indicating active involvement in CBDC research or development over the past year.
Focus on Both Retail and Wholesale CBDCs
The findings of the BIS survey point to a diverse interest in both retail and wholesale CBDCs. Retail CBDCs are designed for general public use, whereas wholesale CBDCs cater to large transactions between financial institutions. The survey highlights a growing inclination towards the development of wholesale CBDCs in the forthcoming years.
“Based on the number of central banks that indicated strong likelihood of issuing a CBDC soon, there could be an introduction of six additional retail and nine wholesale CBDCs by the latter part of this decade,” the BIS reports.
Global Trends Mirrored by the World Economic Forum (WEF)
The BIS survey’s findings resonate with data reported by the World Economic Forum (WEF) earlier this year. The WEF, which promotes public-private cooperation globally, reported that over 98% of central banks worldwide are engaged in some form of CBDC activity, ranging from research and experimentation to pilot programs and full deployment.
Projections for Live CBDCs by 2030
According to the WEF, the next few years could witness a surge in live CBDCs, with projections estimating as many as 24 operational CBDCs by 2030. This prediction underscores the accelerating momentum and broad-based efforts towards embracing digital currencies at a governmental level.
Conclusion
The increasing focus on Central Bank Digital Currencies (CBDCs) by central banks globally signifies a transformative period in the financial sector. With robust research and development initiatives underway, particularly in wholesale CBDCs, the end of the decade could see a significant shift towards digital currencies, shaping the future landscape of global finance.
