A study by the Bank of International Settlements has found nine out of ten central banks are exploring the use of central bank digital currencies (CBDCs).
The survey discovered that more central banks are developing or testing a retail CBDC, which is a digital currency designed for use by consumers.
According to CoinDesk, the survey – which harvested opinion from 81 central banks – explored the level of engagement by banks in CBDC work, along with their motivations and intentions concerning CBDC issuance. BIS is owned by 63 central banks that represent about 95% of the world’s GDP.
The survey found that more than half of the surveyed banks are developing CBDCs or ‘running concrete experiments’ Up to 20% said they were developing or testing a retail CBDC, which is twice the number of central banks working on a wholesale digital currency.
Those jurisdictions represented in the BIS survey account for close to 76% of the global population, with 56 of the surveyed central banks representing emerging and developing economies.
The survey also enquired about stablecoins. It stated, “Central banks differ in their expectations that stablecoins will scale up and become widely used and accepted as a means of payment, depending on the type of stablecoin.” The report added that central banks seem to believe stablecoins backed by a single currency are far more likely to succeed as a method of payment over other types of stablecoins pegged to commodities or other cryptocurrencies.
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