By the end of this decade, the globe may have around 15 retail central bank digital currencies (CBDCs) in use, according to a study by the Bank for International Settlements (BIS).Nine central banks have also stated they’re “very likely” to issue a CBDC for wholesale usage in financial markets over the next six years, according to BIS, an organization with headquarters in Switzerland and is controlled by 63 central banks that collectively account for almost 95% of the global economy.
According to the research, 93% of the 86 central banks examined by the BIS are now working on CBDC projects, with major nations like India, the U.K., and the European Union all seriously considering issuing a digital counterpart of their fiat currencies.The report stated that “global work on CBDCs has made further progress” since last year, with the work being particularly intense in emerging economies where it is considered as a method to assist the unbanked.Retail CBDCs should complement and coexist with other domestic payment options if they are issued.
Cross-border remittances and consumer purchases were found to be the most common applications of stablecoins and other crypto assets, according to the poll results.The latest BIS poll, released in May 2022, concluded that the booming private crypto market had prompted central banks to consider their choices, though in certain areas, enthusiasm may have cooled after the 2022 crypto meltdown.The survey discovered that during the course of the year, more central banks have expressed a low likelihood of issuing a CBDC, with fewer still undecided.
The Bank of England predicted the need for a digital pound earlier this year, while the European Commission unveiled a draft in support of a digital euro in June.According to the U.S. Treasury, it is looking into ways to make digital transactions as secret as feasible.Retail CBDCs have already been adopted by monetary authorities in the Bahamas, Eastern Caribbean, Jamaica, and Nigeria, while trials of a digital yuan in China have sparked concerns about the technology’s potential for governmental spying.