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According to the results of a poll performed by the Bank for International Settlements, nine out of ten central banks around the world are looking at central bank digital currencies (CBDC) (BIS).
According to the poll, more central banks are developing or testing a retail CBDC, which is a digital currency aimed at consumers rather than a wholesale CBDC, which is aimed at banks.
The results of a survey of 81 central banks done in autumn 2021 were presented in a report issued on Friday by BIS, an umbrella body for central banks. The poll looked into banks' involvement in CBDC activities, as well as their motivations and goals for CBDC issuance. BIS is owned by 63 central banks representing approximately 95% of global GDP.
According to the findings, more than half of the polled central banks are creating CBDCs or "performing concrete experiments." Around 20% of central banks are working on a retail CBDC, which is twice the amount working on a wholesale digital currency.
Central banks all around the world are looking into CBDCs as a way to bolster their digital payments and banking infrastructure. CBDCs theoretically hold many promises, from potentially enhancing financial inclusion to speeding up cross-border payments. However, with China leading the way in building and testing a digital yuan, several governments around the world are considering CBDCs as a bid for monetary sovereignty.
BIS signaled central banks throughout the world to begin working on CBDCs in September 2021. The Atlantic Council's CBDC tracker shows that 87 countries, representing over 90% of the global economy, are working on CBDCs.
According to the research, "almost six out of ten responding central banks acknowledged that this growth had hastened their work on CBDCs."
Nearly 76 percent of the world's population is represented in the BIS survey, with 56 of the surveyed central banks representing emerging and developing economies.
While the Bahamas, China, and Nigeria have either issued or are testing a retail CBDC, the poll indicated that 68 percent of other countries will follow suit in the "foreseeable future."
In addition to CBDCs, central banks were asked about stablecoins (cryptocurrencies tied to the value of other assets or currencies, such as the US dollar) and cryptocurrencies in general.
"Depending on the type of stablecoin, central banks' expectations that it will scale up and become widely used and accepted as a means of payment differ," the report said, adding that central banks appear to believe stablecoins backed by a single currency are far more likely to succeed as a method of payment than stablecoins pegged to commodities or other cryptocurrencies.
Around 70% of central banks are investigating the impact of stablecoins on monetary and financial stability, while a quarter are investigating the use of cryptocurrencies.
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