According to a recent study by the Bank for International Settlements (BIS), nine out of ten central banks worldwide are exploring central bank digital currencies (CBDC). Moreover, “the emergence of stabelcoins and other cryptocurrencies has accelerated work on CBDCs.”
BIS Survey of Central Bank Digital Currencies
Last week, the Bank for International Settlements (BIS) published a report titled “Gaining Momentum – Results of the BIS 2021 Survey on Central Bank Digital Currencies.” The authors of the report are Anneke Kosse, senior economist at the bank, and Hilaria Mattei, financial markets analyst.
The BIS CBDC survey was conducted in fall 2021 with the participation of 81 central banks. The report describes:
Nine out of 10 central banks are studying central bank digital currencies (CBDCs), and more than half are already developing them or conducting specific experiments. In particular, work on retail CBDCs has moved to a more advanced stage.
The authors explained that the covid-19 pandemic and “the emergence of stabelcoins and other cryptocurrencies have accelerated work on CBDCs.” This is especially true in “advanced economies, where central banks say that financial stability has become more important as a motivation for their participation in CBDCs,” they added.
Noting that “2021 was characterized by strong growth in the crypto-asset and stablcoin markets,” the report authors state, “On average, nearly six in 10 respondent central banks said that this growth accelerated their work on CBDCs.” The authors continue:
It has also spurred cooperation among central banks to monitor the impact of crypto-assets and stablocoins and coordinate regulatory approaches to contain their risks to the financial system.
In addition, many central banks reported that they are working to create wholesale CBDCs to make cross-border payments more efficient, and more than two-thirds said they are likely to issue retail CBDCs “in the short to medium term.”
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