A survey conducted by the Bank for International Settlements (BIS) reveals that 93% of central banks are currently engaged in research on central bank digital currencies (CBDCs). The survey, which was conducted between October and December 2022 and involved 86 central banks, also suggests that by 2030, there could be up to 15 retail CBDCs and nine wholesale CBDCs in circulation.
The survey indicates that over half of the world’s central banks are either experimenting with or working on CBDC pilots. Nearly a quarter of central banks are already conducting pilot projects for retail CBDCs, while the number of wholesale CBDC projects is lower.
Interestingly, central banks in emerging markets and developing economies are leading the way in CBDC adoption. These countries account for nearly double the share of advanced economies in piloting both retail (29% versus 18%) and wholesale (16% versus 10%) CBDCs.
The survey reveals that financial stability and cross-border payments efficiency are the primary motivations behind CBDC projects for both developing and advanced economies. However, financial inclusion plays a more significant role in driving CBDC projects in developing countries.
While 18% of central banks surveyed anticipate issuing a retail CBDC within the next three years (up from 15% in 2022), the majority (68%) still consider themselves unprepared to launch a retail CBDC in the near future.
Currently, only four CBDCs are in circulation in the Bahamas, the Eastern Caribbean, Jamaica, and Nigeria. However, based on the responses from central bankers, the survey predicts that by the end of the decade, there could be 15 retail CBDCs and nine wholesale CBDCs live.
In recent developments, the Reserve Bank of India has been in negotiations with 18 central banks worldwide to explore the possibility of cross-border payments using its CBDC, the “digital rupee.” Additionally, the Federal Reserve Bank of New York’s Innovation Center recently completed a proof-of-concept for a regulated liability network for a CBDC.
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