A recent survey conducted by the Bank for International Settlements revealed that an increasing number of central banks worldwide are considering the implementation of central bank digital currencies (CBDCs). Out of the 86 banks surveyed, 94% expressed interest in exploring a digital version of their national currencies. This marks a significant increase from the previous year, where 90% of 81 respondents were considering CBDCs.
Interestingly, the survey also found that central banks are more inclined to issue a wholesale CBDC, which would be accessible only to banks and financial institutions, rather than a retail version that could be used by the general public. The shift towards exploring CBDCs reflects a global trend, with countries like China, Nigeria, and the Bahamas already taking steps to introduce their own digital currencies.
In terms of retail CBDCs, more than half of central banks are contemplating various features such as holding limits, interoperability, offline usability, and zero remuneration. This indicates a growing focus on addressing key concerns and requirements for a successful implementation of CBDCs in the future.
The survey, conducted between October 2023 and January 2024, also shed light on the usage of stablecoins, highlighting that they are primarily utilized within the crypto ecosystem and are not widely used for mainstream payments. This underscores the unique position of CBDCs as sovereign digital currencies issued by central banks, aiming to complement existing payment systems and foster financial inclusion.
It is worth noting that CoinDesk, the media outlet reporting on these developments, recently underwent changes in ownership, being acquired by the Bullish group. Despite this acquisition, CoinDesk continues to operate independently with an editorial committee ensuring journalistic integrity and independence. The team at CoinDesk, including journalists like Camomile Shumba, are committed to providing accurate and reliable information on the cryptocurrency industry.
As central banks worldwide navigate the complexities of implementing CBDCs, it is evident that the landscape of digital currencies is evolving rapidly. The survey results indicate a growing momentum towards exploring CBDCs as a way to modernize financial systems and adapt to the digital age. It will be interesting to see how these developments unfold in the coming years and the impact they will have on global economies and financial markets.