A recent survey conducted by the Bank for International Settlements (BIS) revealed that an overwhelming 94% of central banks worldwide are in favor of implementing Central Bank Digital Currencies (CBDCs). The survey, which took place between October 2023 and January 2024, included responses from eighty-six central banks.
This survey highlights the growing interest and momentum behind blockchain technology, with central banks looking to utilize CBDCs for interbank settlement processes. It’s important to note that the survey focused on wholesale CBDCs, which are used by banking entities for activities such as daily settlements with each other, as opposed to retail CBDCs, which individuals would use for their daily transactions.
While full-scale retail CBDCs may still be a few years away, wholesale CBDCs are already seeing implementation in various regions such as the Bahamas, Nigeria, and Jamaica. Many other jurisdictions are also in the process of creating, testing, and deploying their own wholesale CBDC programs, indicating a widespread adoption of this technology in the near future.
The survey also touched upon the usage of stablecoins, noting that they have not been widely adopted outside of the crypto ecosystem. Despite their pegs to fiat currencies, stablecoins have not been utilized by central banks for settlement and transaction purposes. Additionally, retail users of stablecoins remain a niche within the crypto community and have not gained mainstream recognition.
One of the reasons central banks are hesitant to embrace stablecoins is the lack of control over assets on decentralized, public blockchains. In contrast, CBDCs are designed to be deployed on private blockchain ecosystems that can be controlled by central banks, providing them with a greater level of oversight and security.
However, the private nature of these blockchain ecosystems could present challenges such as interoperability issues and fragmentation within the blockchain space. This aspect has raised concerns within the crypto community, with some critics labeling CBDCs as authoritarian. Notably, former US president and current presidential candidate Donald Trump recently voiced his opposition to CBDCs.
Overall, the survey results demonstrate a strong global consensus among central banks in favor of implementing CBDCs. As the world moves towards a more digital and interconnected financial system, the adoption of CBDCs could play a crucial role in shaping the future of banking and finance.