According to the most recent survey from the Bank of International Settlements, nine out of ten global central banks are currently exploring digital currency central bank central (CBDCs) according to BIS. Furthermore, “the emergence of stablecoins and other cryptocurrencies have accelerated the work on CBDCs.”
BIS Central Bank Digital Currency Study
The Bank of International Settlements (BIS) published a report last week titled “Gaining momentum — Results of the 2021 BIS survey on central bank digital currencies.” The report is authored by the bank’s senior economist Anneke Kosse and financial market analyst Ilaria Mattei.
BIS CBDC Survey was completed in fall 2021, with participation from 81 central banks. It describes:
9 out of 10 central banks have begun to explore central bank digital currency (CBDCs), while more than half are currently developing or testing them. The work in retail CBDCs is moving to advanced stages.
The authors explained that both the Covid-19 pandemic and “the emergence of stablecoins and other cryptocurrencies have accelerated the work on CBDCs.” This is especially true in “advanced economies, where central banks say that financial stability has increased in importance as a motivation for their CBDC involvement,” they added.
Noting that “the year 2021 was characterized by the strong growth of the cryptoassets and stablecoin market,” the report states, “On average, almost six out of 10 respondent central banks said that this growth has accelerated their work on CBDCs.” The authors continued:
It has led to collaboration among central banks in monitoring the consequences of cryptoassets, stablecoins, and to coordinate regulatory approaches to reduce their impact on the financial sector.
In addition, many central banks revealed that they are working on wholesale CBDCs to improve cross-border payment efficiency while more than two-thirds said they are likely to issue a retail CBDC “in either the short or medium term.”
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