Crypto: 94% of central banks are on the verge of issuing CBDCs

A recent survey by the Bank for International Settlements (BIS) reveals that central banks’ interest in issuing central bank digital currencies (CBDCs) continues to grow. This trend could disrupt the management of monetary policy in the coming years.

Widespread Adoption of CBDCs in Sight?

According to a recent survey by the Bank for International Settlements (BIS), central banks are showing increasing interest in issuing digital currencies.

The survey reveals that 94% of the 86 banks surveyed are now considering issuing a digital version of their national currency, up from 90% in 2021.

While financial institutions are more inclined to adopt a wholesale CBDC, initially reserved for financial players, more than half of them are already working on the features of a future retail digital currency, intended for the general public.

Although central bank digital currencies (CBDCs) remain an emerging concept, some countries are already positioning themselves as pioneers. China is seen as a front-runner in this area, while Nigeria and the Bahamas are among the first nations to have launched their own official CBDCs.

CBDCs: Catalysts for a New Monetary Era?

The BIS survey also highlights the growing attention central banks are paying to the technical specifics of retail CBDCs. More than half of them are exploring the implementation of holding limits, interoperability between different systems, offline capabilities, and zero remuneration.

“More than half of central banks are considering holding limits, interoperability, offline options, and zero remuneration”

Beyond technological challenges, the widespread adoption of CBDCs would mark a significant shift in the conduct of monetary policies. With these new tools, central banks would have unprecedented levers to manage the economy with unmatched precision and responsiveness.

Meanwhile, the BIS survey highlights the current limitations of stablecoins. Despite their potential, these digital assets still struggle to establish themselves as payment instruments outside the crypto ecosystem.

This observation suggests that the next major monetary revolution could well be orchestrated by central banks, through the deployment of their own digital currencies.