Global Central Banks Pave the Way for Digital Currencies by 2030 – BIS Survey
The Bank for International Settlements (BIS) has found in a survey published on Monday that around two dozen central banks in emerging and advanced economies are expected to introduce digital currencies by the end of the decade.
Central banks worldwide have been exploring and developing digital versions of their currencies for retail use to prevent the private sector from monopolizing digital payments as cash usage declines. Some central banks are also considering wholesale versions for transactions between financial institutions.
According to the BIS survey conducted in late 2022, the majority of the new Central Bank Digital Currencies (CBDCs) will be introduced in the retail space. Eleven central banks may join the Bahamas, the Eastern Caribbean, Jamaica, and Nigeria, which already have operational digital retail currencies.
The survey also revealed that nine central banks could launch CBDCs on the wholesale side, potentially providing financial institutions with new functionalities through tokenization. The report authors noted that enhancing cross-border payments is a significant driving factor for central banks’ efforts in developing wholesale CBDCs.
Notable developments in the field include the Swiss National Bank’s announcement in late June to issue a wholesale CBDC on Switzerland’s digital exchange as part of a pilot program. The European Central Bank is also progressing towards initiating a digital euro-pilot and potentially launching it in 2028.
China’s pilot testing already involves 260 million people, and India and Brazil, two significant emerging economies, plan to introduce their digital currencies next year.
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The BIS survey indicated that 93% of central banks participating in the survey are currently engaged in some form of CBDC exploration, with 60% stating that the rise of stablecoins and other crypto assets has expedited their efforts.
While the crypto market has experienced turmoil over the past 18 months, including the failure of TerraUSD, the collapse of the FTX crypto exchange, and the bankruptcy of banks servicing crypto providers, these events had minimal impact on traditional financial markets but led to sell-offs in various crypto assets.
The survey further revealed that nearly 40% of respondents reported that their jurisdictions’ central banks or other institutions had recently conducted studies on the usage of stablecoins and other crypto assets among consumers or businesses. The BIS report emphasized that if crypto assets, including stablecoins, become widely used for payments, they could pose a threat to financial stability.
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.
