In a survey conducted by the Bank for International Settlements(BIS) from October to December 2021, 90% of 81 central banks showed their interest in CBDC.
According to the survey, more than 60% of banks are doing trials or proofs-of-concept linked to digital currencies, and 26% of the banks are conducting CBDC pilots.
CBDC interest has increased from roughly 83 percent in 2020, which might be ascribed to a shift to digitization in the aftermath of the COVID-19 pandemic, as well as the growth of cryptocurrencies.
The study looked into banks’ involvement in CBDC activities, as well as their motivations and goals for CBDC issuance. BIS is actually owned by 63 central banks representing approximately 95% of the global GDP.
56% of the surveyed central banks represent emerging and developing economies. While China, Nigeria, and Bahamas have either issued or are testing a retail CBDC, the poll indicated that 68% of other countries will follow suit in the near future.
Stablecoins pegged to and backed by fiat money are seen as having some potential as a form of payment in 25 of the 81 nations surveyed, including the United States and Japan.
In comparison, more than 60% of respondents thought cryptocurrencies had trivial or no use when it came to domestic payments, while around 40% said the same thing about cross-border transfers.
About 70% of central banks are exploring the impact of stablecoins on monetary and financial stability, while a quarter are researching the use of cryptocurrencies.
“Work on wholesale CBDCs is increasingly driven by reasons related to cross-border payments efficiency. Central banks consider CBDCs as capable of alleviating key pain points such as the limited operating hours of current payment systems and the length of current transaction chains” the survey noted.
Last month, PwC conducted a similar study which stated that 80% of banks are considering or have already launched CBDC. The study ranks both retail CBDC, and also the wholesale CBDCs used by financial institutions holding with the central bank, out of 100.
