BIS Survey Reveals CBDC’s Are Moving From ‘Conceptual’ To ‘Intensive Practical Development’
The Bank of International Settlements (BIS) conducted a survey, showing roughly ten percent of central banks are expected to issue a Central Bank Digital Currency in the near future.
The BIS report was released on January 23 and presented the results from a survey conducted on 66 central banks from all over the world, investigations on how eager these banks are to create a CBDC.
The results were, as shown above, were that only ten percent of these surveyed banks are interested in developing and issuing a central bank digital currency anytime soon, which is twice more than last year. 20% of them said they’re likely to have their own CBDC at some point in the future, just not in the near future.
What Could Motivate Central Banks to Issue CBDCs?
The participants in the study represented 45 emerging market economies (EMEs) and 21 advanced ones. The EME banks were more motivated to develop an all-purpose CBDC, as this could bring increased domestic payment efficiency, financial inclusion and safer payment. Advanced economies said the safety of payments would be the only reason for them to develop a CBDC.
Both categories showed the same paths when it comes to a wholesale CBDC, EMEs being interested in an all-purpose CBDC too. Advanced economies were also motivated by the increased efficiency of international payments brought on by a CBDC.
CBDCs Being More Understood as a Result of Joint Efforts
(WEF) World Economic Forum and some of the major central banks this week, came up with a CBDC policy maker toolkit to help policymakers understand the advantages of CDBCs. For the development of the framework, WEF worked with central bank researchers, regulators and experts from more than 40 institutions.
The framework recognizes how a CBDC increases the speed and efficiency of international interbank payments, while the costs, the counterparty and settlement risks are being reduced.
Also on January 22, Facebook’s Libra has helped in pushing central banks to give more consideration to CBDC's, stated a previous head of payments and settlements at the Bank of Japan.