• The Bank of International Settlements (BIS) recently conducted a survey of 86 central banks, and predicted that by 2030 there will be 15 retail and nine wholesale Central Bank Digital Currencies (CBDCs).
• 93% of the surveyed central banks are researching CBDCs, and more than 50% have started making substantial efforts to develop one.
• Four countries— Nigeria , Jamaica, The Bahamas—have issued retail CBDCs, with other apex banks considering following suit as 18% of the surveyed banks said they could give out their own digital currency within three years.
Bank of International Settlements Predicts Increased CBDC Adoption
The Bank of International Settlements (BIS) recently conducted a survey of 86 central banks, predicting that by 2030 there will be 15 retail and nine wholesale Central Bank Digital Currencies (CBDCs). This suggests an increasing adoption rate for CBDCs in the near future.
Survey Findings Show Banks Researching CBDCs
According to the survey findings, 93% of all surveyed central banks are researching CBDCs, while more than 50% have already ventured into developing a pilot project related to the technology. Currently, only four countries—Nigeria , Jamaica, The Bahamas—have issued their own retail CBDCs. However 18% of the surveyed apex banks are considering giving out their own digital currencies within three years.
Crypto Popularity Influencing Banks‘ Interest in CBDCs
The BIS noted that crypto’s growing popularity is influencing Central Banks‘ interest in issuing their own digital currencies. This could be due to its potential use cases such as providing financial inclusion or even creating new payment systems for international transactions across borders. Furthermore, this could also help lower transaction costs for businesses and consumers while improving liquidity management for investors.
Potential Benefits from Adopting Retail or Wholesale CBDCS
Adopting either retail or wholesale CBDC can bring numerous benefits including improved economic efficiency through faster transaction times and better data security; increased financial inclusion through access to banking services; enhanced monetary policy transmission capabilities; improved cross-border payments; and finally reduced risk by reducing reliance on private intermediaries such as money transfer services providers or credit card companies.
It is clear from these findings that Central Banks are increasingly looking into issuing both retail and wholesale digital currencies in order to benefit from its many advantages over traditional paper money. It remains to be seen whether these plans will come to fruition but it is clear that this is an area where governments around the world have increased interest in recent years