A BIS survey has discovered that an increasing number of central banks are investigating the possibility of implementing a Central Bank Digital Currency (CBDC).
A Bank for International Settlements (BIS) survey published on Friday revealed that an increasing number of central banks are considering the adoption of a central bank digital currency (CBDC). Out of the 86 participating banks, 94% expressed interest in developing a digital version of their respective national currencies. This marks a rise from the 90% reported in a 2021 survey conducted by the BIS, which serves as an overarching body for central banks worldwide.
According to respondents, they are more inclined to introduce a wholesale CBDC rather than a retail one in the next six years. A wholesale CBDC would be restricted to banks and financial institutions, whereas a retail CBDC could be utilized by the general public for everyday transactions.
Various countries around the world have been considering the creation of a digital currency for a number of years, with China being one of the pioneers in this field. Nigeria and the Bahamas were among the initial nations to introduce their own Central Bank Digital Currencies (CBDCs).
"For retail CBDCs, more than half of central banks are considering holding limits, interoperability, offline options and zero remuneration," the BIS said.
According to the survey carried out from October 2023 to January 2024, stablecoins, which are cryptocurrencies linked to a particular asset like the dollar or gold, are seldom utilized for transactions beyond the cryptocurrency environment.
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