Most central banks are exploring central bank digital currencies (CBDCs), and more than half of them are conducting concrete experiments or working on a pilot. Over the course of 2022, the share of central banks engaged in some form of central bank digital currency (CBDC) work rose further, to 93%, a Bank for International Settlements report has revealed.
According to its findings their uncertainty about short-term CBDC issuance is fading while work on retail CBDC is more advanced than on wholesale CBDC: almost a quarter of central banks are piloting a retail CBDC.
The report, which surveyed 86 central banks, finds that more than 80% of central banks see potential value in having both a retail CBDC and a fast payment system, mostly because a retail CBDC has specific properties and may offer additional features. The survey suggests that there could be 15 retail and nine wholesale CBDCs publicly circulating in 2030. More than nine out of 10 central banks engage with other stakeholders when designing proofs of concept, pilots or live CBDCs.
The degree of that engagement and the type of entities involved differ between emerging market and developing economies (EMDEs) and advanced economies (AEs). They also differ by type of CBDC and the stage of work. The survey further shows that, to date, stablecoins and other cryptoassets are rarely used for payments outside the crypto ecosystem. Some 60% of surveyed central banks reported that they have stepped up their CBDC work in response to the emergence of cryptoassets.
See the full report here
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