90 percent of world’s central banks are exploring the possibility of introducing CBDCs, reveals BIS survey

According to the latest survey by the Bank of International Settlements (BIS), nine out of 10 central banks globally are working with the idea of ​​launching a central bank digital currency (CBDC). World. The survey, which involved 81 central banks, reveals that 50 percent of central banks interested in launching retail CBDCs are currently already developing such products or are at some stage in the process of experimentation.

A paper released The BIS Monetary and Economic Department said that of the 81 central banks surveyed from October to December 2021, 90 per cent were “engaged in some form of CBDC,” 26 per cent running pilots on CBDCs and over 60 per cent experimenting. or proof. A concept related to digital currency.

According to the BIS, the increase in interest around CBDCs – from around 83 per cent in 2020 – could be driven by the shift to digital solutions amid the coronavirus pandemic, as well as increased growth. stable coins and others cryptocurrency,

The BIS study also highlights the fact that central banks are putting more effort into retail CBDCs. Nearly one-fifth of central banks are working on retail CBDCs, which is twice the share of wholesale CBDCs. When it comes to the underlying architecture, more central banks are looking at those involved in the private sector.

More than 70 percent of central banks are considering a two-tier model, where the CBDC is distributed to the public through private sector intermediaries. “Financial stability and growth in cross-border payments are the reasons for the growing demand for retail CBDCs,” BIS said.

The paper cited the emergence of multiple CBDCs, starting with the launch of the Bahamian Sand Dollar and Nigeria in October 2020. e naira A year later as well as the evolution of the Eastern Caribbean DC Cash and of china digital yuan in 2021. According to a BIS survey, more than 70 percent of central banks are exploring CBDCs with “private sector collaboration and interactivity” for existing payment systems.

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