Already as much as 86 percent. central banks surveyed by the Bank for International Settlements are considering issuing digital currencies. Reportedly, within three years, CBDCs will be available in countries with one fifth of the world’s population.
The Bank for International Settlements is researching the topic of CBDC
The Bank for International Settlements has just published the results the third edition of the study on CBDC. Experts conducted the survey in 2020. 65 central banks from countries which are responsible for 72 percent of world population. Of these, 21 institutions came from developed countries and 44 from economies “Emerging and developing”.
It turned out that as much as 60 percent. among the surveyed banks, they went from theoretical analysis to practical experiments. A year earlier, it was only 42 percent. In turn, 14 percent. of such projects is already at the stage of implementation works and pilot programs. In turn, interest in the idea of CBDC was shown by as much as 86 percent. countries.
Why do banks want to implement CBDC? In developing countries, it is all about financial inclusion, i.e. broadening access to financial services. All institutions point to the efficiency, security and efficiency of payments. In addition, they mention the topic of monetary sovereignty and the threat “digital dollarization “ and the emergence of private digital currencies (eg Facebook’s Diem).
60 percent however, respondents declare that they are unlikely to launch a digital currency in the foreseeable future.
This out-of-the-way majority melts over time, largely due to the declining percentage of banks judging that such a scenario is “very unlikely
– indicated in the report of the Bank for International Settlements.
Cryptocurrencies are a niche
The study also asked central banks about cryptocurrencies and stablecoins. Most respondents say cryptocurrencies remain a niche product. In turn, stablecoins are already arousing more interest and are also a topic researched by central banks. Compared to 2019, the percentage of institutions admitting to follow this phenomenon increased.
Today, China is carrying out the most advanced work on CBDC. The digital yuan is already being tested on the living organism in several Chinese cities. Facebook is still working on Diem.