CBDC: Central Banks Ramp Up Digital Currency Exploration
Central bank digital currencies (CBDCs) are something that central banks are increasingly looking into, BIS’ most recent survey shows.
The document revealed a sharp rise in CBDC-related trials, with proof of concept projects increasing by 35% and CBDC pilots tripling compared to the year before.
Different approaches have been taken by central banks on CBDCs and they are thinking over various design features. Eighty-three institutions, constituting slightly over one-third of all central banks were sampled in the survey with twenty-eight from advanced economies and fifty-eight from developing ones.
According to the findings, more than half of central banks (54%) are involved in proofs of concept or other related technologies while about one third is running a pilot program for a CBDC.
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Wholesale CBDC proof of concept studies account for 81% among advanced economies and 33% piloted this change up from 60% and 10% respectively over the previous period. In contrast, fewer emerging-market central banks have been involved in such activities as a third has some sort of proof-of-concept process underway only and only 19 percent run pilots—a little changed figure from last year.
The adoption of stablecoins remains low despite growing interest in CBDCs. Cryptocurrencies had a market cap worth $2.7 trillion as at May 2024 with stablecoins making up just under $161 billion –6%.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
