Central banks around the world are showing a growing interest in exploring the concept of a central bank digital currency (CBDC), according to a recent survey conducted by the Bank for International Settlements (BIS). The survey revealed that 94% of the central banks that participated in the study are looking into the possibility of developing a digital version of their national currencies. This marks an increase from the 90% of respondents in a similar survey conducted in 2021.
Interestingly, the survey also found that central banks are more inclined to issue a wholesale CBDC for institutions before considering a retail version. A wholesale CBDC would be limited to use by banks and financial institutions, while a retail CBDC would be accessible to the general public for everyday transactions.
The trend of exploring CBDCs is not new, as countries such as China, Nigeria, and the Bahamas have already made strides in issuing their own digital currencies. The BIS noted that more than half of the central banks considering retail CBDCs are looking into various features such as holding limits, interoperability, offline usability, and zero remuneration.
In addition to CBDCs, the survey also touched on the usage of stablecoins, which are cryptocurrencies pegged to a specific asset like the US dollar or gold. The findings revealed that stablecoins are primarily used within the crypto ecosystem and are not widely adopted for mainstream payments.
It’s worth mentioning that CoinDesk, the media outlet reporting on the cryptocurrency industry, recently underwent changes in ownership. In November 2023, CoinDesk was acquired by the Bullish group, which owns a regulated digital assets exchange. Both companies have interests in blockchain and digital asset businesses, including significant holdings of digital assets like bitcoin. Despite the acquisition, CoinDesk continues to operate independently with an editorial committee ensuring journalistic integrity.
Camomile Shumba, a regulatory reporter for CoinDesk based in the UK, shared insights on the survey results. She highlighted the increasing interest among central banks in exploring CBDCs and the preference for wholesale versions over retail ones. Shumba’s background includes internships at reputable news outlets like Business Insider and Bloomberg News, bringing a wealth of experience to her reporting on regulatory matters in the cryptocurrency space.
As the world of digital currencies evolves, the exploration of CBDCs by central banks signals a potential shift towards a more digitalized financial landscape. The survey results shed light on the current trends and considerations surrounding the development of CBDCs, offering valuable insights into the future of money and payments.