94% of central banks are actively exploring the development of a central bank digital currency (CBDC), and the results from an extensive survey performed by the Bank for International Settlements (BIS) involving 86 central banks highlights a significant increase in experiments and pilot programmes, particularly in advanced economies, with a notable rise in activity among emerging markets and developing economies as well.
The survey underscores that central banks are adopting varied approaches to CBDC design and implementation, moving at their own pace. A key finding is the greater likelihood of central banks issuing wholesale CBDCs within the next six years compared to retail CBDCs. Wholesale CBDCs, designed for transactions between financial institutions, are being considered for features like interoperability and programmability, while retail CBDCs, intended for everyday transactions by the public, are being considered for holding limits, offline options, and zero remuneration.
The survey also sheds light on the current status of stablecoins and other cryptoassets. Although stablecoins are rarely used for payments outside the crypto ecosystem, about two-thirds of the surveyed jurisdictions are developing regulatory frameworks for these digital assets. The survey notes the growing involvement of traditional financial institutions in stablecoin initiatives, such as Société Générale’s euro-denominated stablecoin and PayPal’s USD-based stablecoin, indicating a potential increase in the use of stablecoins for payments beyond the crypto sphere.
This comprehensive survey provides valuable insights into the motivations, design considerations, and regulatory approaches of central banks towards CBDCs and cryptoassets, reflecting the evolving landscape of digital finance.
