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17/06/24
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Bank for International Settlements’ Survey Unveils CBDC Development Status Worldwide
The Bank for International Settlements released a report on a survey on central bank digital currencies and cryptocurrency a few days ago, noting that 94 percent of surveyed central banks are exploring a central bank digital currency (CBDC).
Eighty-six banks participated in the survey, with seventy-four of them participating in the 2022 survey; 38 central banks participated for the sixth year in a row; 28 from advanced economies (AEs) and 58 from emerging markets and developing economies (EMDEs).
The 2023 survey results show that most central banks are working on both retail and wholesale CBDCs; about thirty percent focus on retail CBDCs only and only two percent are working on wholesale CBDCs. 54% are experimenting with proof of concept and 31% are running a pilot.
Last year, both retail and wholesale CBDC work progressed to more advanced stages. There has been a sharp uptick in experiments and pilots in AEs, especially with wholesale CBDCs; 81% of AE central banks are running proof of concept while 33% were running pilots; 39% of EMDE central banks are working on a wholesale CBDC proof of concept and 19% on pilot.
Preserving the role of central bank money, enforcing the role of central bank money as a settlement asset in a tokenised ecosystem, enhancing domestic payments efficiency, facilitating financial inclusion, and addressing the challenges that cross-border payments are some of the reasons central banks are working on CBDCs.
Twenty-two percent of the respondents expect to issue a wholesale CBDC in the medium term, 38% would be unlikely to issue in the medium term, and 12% said they are likely to issue a retail CBDC within the next three years.
“More than 60% of responding jurisdictions currently have or are developing a regulatory framework for stablecoins and other cryptoassets. Also, many jurisdictions decided to regulate cryptoassets with the aim of promoting market efficiency, innovation and competition (74%) and ensuring the safety and soundness of regulated institutions (70%),” reads the report.
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