A survey by the Bank for International Settlements (BIS) shows that around 15 central bank digital currencies (CBDCs) could be in circulation worldwide in the next 10 years.
15 Central Banks to Use Digital Currency (CBDC) in the Next Period
The BIS, a Switzerland-based institution representing 63 central banks, has determined that nine central banks are very likely to issue CBDCs for wholesale use in financial markets over the next six years.
The survey, which covered a total of 86 central banks, revealed that 93% of them are already conducting CBDC studies.
Major jurisdictions such as India, the United Kingdom, and the European Union are actively exploring issuing digital versions of their fiat currencies.
The development of CBDCs is seen as a way to increase financial inclusion, especially in emerging economies.
According to the report, retail CBDCs are expected to coexist with and complement existing payment methods in local economies.
The survey also highlighted that stablecoins and other crypto assets are rarely used for payments outside the crypto ecosystem, with cross-border remittances and consumer purchases being the most common use cases.
A previous BIS survey conducted in May 2022 showed that the rise of the private crypto market prompted central banks to explore CBDC options. However, after the crypto market crash of 2022, some enthusiasm for CBDCs may have cooled.
The study noted an increase in the number of central banks expressing reluctance to issue CBDCs in the near future.
Looking ahead, the Bank of England has indicated that a digital sterling will be needed in the future, and the European Commission has proposed legislation to support a digital euro. The U.S. Treasury is also exploring ways to ensure the privacy of digital transactions.
*Not investment advice.
