Researches at the Bank of International Settlements, an international financial institution owned by central banks that is designed to foster international monetary and financial cooperation said in a report on Thursday, January 23rd, that 80 percent of central banks all around the work are “undertaking extensive work on central bank digital currencies.”
The survey, which was conducted to determine global interest in central bank digital currencies (CBDCs), included results from sixty-six central banks collected over the latter half of 2019. The banks were located in both emerging and developed economies.
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The results of the survey showed that most of the work being done on central bank digital currencies, or CBDCs, is in the experimental and proof-of-concept stages: “the survey corroborates the findings from last year’s exercise, especially that a wide variety of motivations drives extensive central bank research and experimentation on CBDCs,” the report said.
However, “only a few EME (emerging market economy) central banks have progressed to intensive development (e.g. developing the operational arrangements for a CBDC and/or amending laws to allow the central bank to issue one) or pilot projects and have firm intentions to issue a CBDC soon. Nonetheless, their plans appear to be accelerating compared with earlier expectations.”
Emerging market economies report stronger motivations and a higher likelihood to issue #CBDC than advanced economies. Cryptocurrencies remain a niche means of payment #digitalcurrency #centralbank #cryptocurrencies #wef20 #Davos2020 @BCoeure https://t.co/HjIjFJbF2H pic.twitter.com/0qLhE7lMj8
— Bank for International Settlements (@BIS_org) January 23, 2020
Indeed, the most recent report issued by the BIS also said that “there is no evidence of a widespread or general move to expand this research into experimentation and pilot arrangements. However, a few central banks with sufficient motivation are proceeding to pilot various designs.”
Still, “for most people around the world, a general purpose or wholesale CBDC is still unlikely in their jurisdiction in the medium term.”
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