A recent survey by the Bank for International Settlements (BIS) indicates that as many as 15 retail central bank digital currencies (CBDCs) might be circulating globally by 2030.
Furthermore, about nine central banks could be issuing wholesale CBDCs for financial markets within the next six years.
BIS’s survey, involving 86 central banks, highlighted that 93% of the respondents are actively engaged in CBDC research and development. High-potential jurisdictions like India, the European Union, and the U.K. are seriously considering the digital adaptation of their traditional fiat currencies.
Despite the growing interest in crypto assets and stablecoins, these digital entities remain largely confined within the crypto ecosystem and are seldom used for mainstream payments. Additionally, an increasing number of central banks are not keen on issuing a CBDC in the near future.
The retail CBDCs, which could be in circulation by the end of the decade, aim to address financial inclusion by reaching out to unbanked populations. These digital currencies will not replace but complement existing payment methods.
As digital currencies continue to reshape the financial landscape, the results of the BIS survey provide valuable insights into the views and plans of central banks in this rapidly evolving domain.
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