BIS Survey: 93% of Central Banks Worldwide Actively Developing CBDCs

The findings of the 2022 study on central bank digital currencies (CBDC) and cryptocurrency have been made public by the Bank for International Settlements (BIS), a group that aims to facilitate the international collaboration of central banks around the world. 93% of the 86 banks examined for the study were found to be engaged in CBDC-related operations on various levels.

BIS: CBDC Activity Involved in 93% of Central Banks

The findings of a poll conducted in 2022 on central bank digital currencies (CBDC) and cryptocurrency have been made public by the Bank for International Settlements (BIS), a body that serves as the bank of central banks. The institution claims that in a recent document titled "Making Headway," 93% of the 86 banks that were surveyed were "engaged in some form of CBDC work and more than half are running concrete experiments or working on pilots."

According to the study, these figures demonstrate that the uncertainty surrounding the issuance of CBDCs in the near future is dissipating. However, according to their study, some of these central banks are more likely than others to issue a retail CBDC during the next three years.

The number of central banks likely to issue this sort of currency has more than doubled since the previous study, but the idea of wholesale CBDCs, which would be used as a payment rail between private banks, is gaining traction.

 The improvement of cross-border payments is one of the drives of CBDC work and research, however the reasons for issuing CBDCs differ. However, in emerging markets and developing countries, the CBDC research is more motivated by "financial inclusion-related motivations."

Stablecoins and cryptocurrencies

Stablecoins and other cryptocurrency assets have spurred innovation in the traditional finance sector. According to the poll, the existence of these options has caused 60% of the central banks surveyed to expedite their work on CBDCs.

Currency issuers are likewise concerned about the potential impacts of stablecoin issuance on their economy. According to the BIS poll, 40% of these central banks have investigated the share of usage that crypto assets and stablecoins have in their jurisdictions, and 70% of them are looking into the economic instability that stablecoins might bring about.

Stablecoins and crypto assets, however, are hardly ever used outside of cryptocurrency trading exchanges and decentralized finance platforms. Remittances and retail payments are only infrequently carried out, according to central banks.

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