More Central Banks Are Exploring a CBDC, BIS Survey Finds

As a seasoned crypto investor with a keen interest in central bank digital currencies (CBDCs), I find the latest BIS survey results intriguing. The increasing number of central banks exploring CBDCs, up from 90% to 94%, is a clear indication that this trend is gaining momentum.

A greater number of central banks than previously have expressed interest in creating their own digital currencies, as indicated by a recent survey conducted by the Bank for International Settlements (BIS).

Among the eighty-six banks that took part in the survey, a staggering 94% expressed their intent to explore digital forms of their respective national currencies. This figure represents a noteworthy increase from the 90% of the eighty-one respondents who had voiced similar intentions in the 2021 survey overseen by the Bank for International Settlements (BIS).

As a researcher studying the potential implementation of Central Bank Digital Currencies (CBDCs), I’ve discovered that some respondents expressed a preference for introducing a wholesale CBDC before a retail one within the next six years. The distinction lies in the accessibility: a wholesale CBDC would exclusively serve banks and financial institutions, whereas a retail CBDC would be open to the general public for daily transactions.

For several years now, countries all around the world have been deliberating on the possibility of creating their own digital currencies. China has emerged as one of the pioneers in this field. Notably, Nigeria and the Bahamas were among the initial nations to introduce Central Bank Digital Currencies (CBDCs) into circulation.

According to the Bank for International Settlements (BIS), over half of the central banks exploring retail Central Bank Digital Currencies (CBDCs) are contemplating regulations regarding holding limits, ensuring interoperability with other systems, providing offline access, and implementing zero-fee policies.

A survey carried out from October 2023 to January 2024 revealed that stablecoins, which maintain a constant value linked to an asset like the dollar or gold, are seldom employed for transactions beyond the cryptocurrency marketplace.