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90% of central banks considering adopting CBDCs (BIS survey)

In its most recent study, the Bank for International Settlements (BIS) estimated that nine out of ten central banks are looking into declassifying their own CBDC. Additionally, 50% of these financial institutions are currently developing or experimenting with such products.

Most central banks are interested in CBDCs

The international monetary institution – BIS – has surveyed 81 central banks to determine their stance on CBDCs and how close they are to adoption. According to the results, 90% of the participants indicated that they are working towards the launch of this product. Almost half of central banks are in the process of developing CBDC or “running concrete experiments.”

“Globally, more than two-thirds of central banks believe they are likely or possibly to issue retail CBDC in the short to medium term. Central banks see CBDCs as able to alleviate key pain points such as the limited uptime of current payment systems and the length of current transaction chains,” the BIS said.

Speaking of CBDCs, it’s worth noting China’s efforts. In contrast to cryptocurrencies local authorities are very supportive of the digital yuan concept and often launch initiatives aimed at popularizing it.

The financial product was launched as a payment method during the Beijing Winter Olympics, with daily transactions accounting for about US$300,000 in e-CNY.

In addition, Chinese officials distributed significant amounts to residents of major cities such as Beijing, Shenzhen and Chengdu.

Other countries considering the possible launch of such a project or conducting trials include Malaysia, Thailand, Zambia, Indonesia, Mexico and others.

In addition to CBDCs, the BIS addressed stablecoins and cryptocurrencies in its study. The institution envisioned that stablecoins backed by a single fiat currency could emerge as a payment method. At the same time, it was for those who like commodities or digital assets Bitcoin are bound, not so optimistic.

From 80% to 90%

The previous BIS survey on the subject found that 80% of central banks are working towards launching their own CBDCs. However, it is worth noting that the study was conducted in 2019 and included 66 participants instead of 81.

Back then, all the banks that admitted to testing their future CBDCs came from an emerging market rather than a mature one:

“Emerging markets generally have more motivation than advanced economies to work on multi-purpose CBDCs (which can serve as a replacement or complement to banknotes). In this regard, domestic payment efficiency, payment security and financial inclusion were rated as “very important” on average for emerging businesses. For advanced economies, the only motivation rated as very important was payment security.”

Source: Crypto News Deutsch

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