A recent 2021 survey by the Bank for International Settlements (BIS) reveals that 90% of central banks worldwide are actively engaged in Central Bank Digital Currency (CBDC) development—up from 86% the previous year. Notably, 60% of surveyed institutions cited the rapid growth of stablecoins and cryptocurrencies as a key motivator for accelerating their CBDC projects.
Key Survey Insights
- Scope: Covered 81 central banks during fall 2021.
Focus Areas:
- Retail CBDCs: Over 30% of banks prioritize them.
- Hybrid Approach: 70% explore both retail and wholesale CBDCs.
- Wholesale-Only: None reported.
Global CBDC Development Progress
Stages of Development:
- 62% in testing/concept validation.
- 26% in active development/pilot phases (up from 14% in 2020).
- Retail CBDC projects outnumber wholesale efforts 2:1.
Recent Launches:
- Nigeria’s eNaira.
- East Caribbean’s DCash.
- China’s Digital Yuan (e-CNY).
Future Projections:
- 68% of central banks may issue retail CBDCs within 1–6 years.
Motivations Behind CBDC Adoption
Central banks prioritize:
- Financial stability
- Efficient monetary policy
- Payment security (robustness)
- Enhanced domestic/cross-border transactions
- Greater financial inclusion
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Cryptocurrency’s Role
The rise of crypto assets and stablecoins has spurred inter-bank collaborations to:
- Monitor systemic risks.
- Align regulatory frameworks.
- Mitigate threats to traditional finance.
FAQ Section
Q1: Why are retail CBDCs more popular than wholesale versions?
A: Retail CBDCs directly impact public payment systems and financial inclusion, aligning with broader socioeconomic goals.
Q2: How do stablecoins influence CBDC development?
A: Their rapid adoption pressures central banks to offer state-backed digital alternatives to maintain monetary control.
Q3: Which countries lead in CBDC implementation?
A: Nigeria, China, and the Eastern Caribbean are frontrunners with live pilots or full launches.
Q4: Could CBDCs replace cryptocurrencies?
A: Unlikely—CBDCs complement cryptos by providing regulated digital sovereignty, while private assets thrive in decentralized niches.
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