9 out of 10 Central Banks Researching CBDC

According to a study published by the Bank for International Settlements (BIS), 90% of central banks worldwide are eager to launch Central Bank Digital Currencies (CBDCs). The study was about the participation of 91 central banks in CBDCs, as well as their intentions and motivations for issuing CBDCs. According to the report, nine out of 10 central banks are researching central bank digital currencies, and more than half are conducting concrete experiments. China has already started the trend with its digital yuan. The BIS found that the emergence of stablecoins, the Covid-19 pandemic, and cryptocurrencies accelerated the CBDC movement, especially in advanced economies. In addition, retail CBDCs gained more momentum as they moved to advanced stages. The data in the survey highlighted the following; "Globally, more than two-thirds of central banks believe they could issue retail CBDCs in the short or medium term." On the other hand, wholesale CBDCs stand out as they take steps towards cross-border payment efficiency. The BIS had previously stated that wholesale CBDCs would face challenges such as differences in jurisdictional boundaries and governance provisions between countries. Therefore, while encouraging the development of technical capabilities and large-scale testing, it was willing to help countries address these differences. Another finding from the study is that "Central banks see CBDCs as capable of alleviating significant shortcomings of existing payment systems, such as operating hours." According to analyses, when launched, CBDCs are expected to provide financial inclusion for approximately 1.7 billion people outside the banking system. This is because CBDCs are digital assets pegged to a real-world asset and backed by central banks, meaning they represent a claim against the bank in exactly the same way banknotes work. This article is an excerpt. excerpt .