{"id":10567,"date":"2022-05-06T18:27:36","date_gmt":"2022-05-06T18:27:36","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/90-of-surveyed-central-banks-are-exploring-cbdcs-bis\/"},"modified":"2022-05-06T18:27:38","modified_gmt":"2022-05-06T18:27:38","slug":"90-of-surveyed-central-banks-are-exploring-cbdcs-bis","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/90-of-surveyed-central-banks-are-exploring-cbdcs-bis\/","title":{"rendered":"90% of surveyed central banks are exploring CBDCs \u2014 BIS"},"content":{"rendered":"

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A survey conducted by the Bank for International Settlements, or BIS, suggested that many central banks around the world are looking into rolling out a central bank digital currency, or CBDC.<\/p>\n

In a paper released on Friday, the BIS Monetary and Economic Department said 90% of 81 central banks surveyed from October to December 2021 were \u201cengaged in some form of CBDC work,\u201d with 26% running pilots on CBDCs and more than 60% doing experiments or proofs-of-concept related to a digital currency. According to the BIS, the increase in interest around CBDCs \u2014 up from roughly 83% in 2020 \u2014 may have been driven by a shift to digital solutions amid the COVID-19 pandemic as well as the growth in stablecoins and other cryptocurrencies.<\/p>\n

\u201cGlobally, more than two-thirds of central banks consider that they are likely to or might possibly issue a retail CBDC in either the short or medium term,\u201d said the BIS. \u201cWork on wholesale CBDCs is increasingly driven by reasons related to cross-border payments efficiency. Central banks consider CBDCs as capable of alleviating key pain points such as the limited operating hours of current payment systems and the length of current transaction chains.\u201d<\/p>\n

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Nine out of 10 respondent #CentralBanks<\/a> are engaged in some form of CBDC work, according to the BIS CPMI survey. The share developing or piloting CBDC has almost doubled on year, to 26%, while six out of 10 are doing experiments or proofs-of-concept https:\/\/t.co\/aQhcWCT5g0 pic.twitter.com\/7Tk2UkZpVv<\/a><\/p>\n

\u2014 Bank for International Settlements (@BIS_org) May 6, 2022<\/a><\/p><\/blockquote>\n

The paper cited the emergence of several CBDCs, beginning with the launch of the Bahamian Sand Dollar in October 2020 and Nigeria\u2019s eNaira one year later as well as the development of the Eastern Caribbean DCash and China\u2019s digital yuan in 2021. According to the BIS survey, more than 70% of central banks are also exploring CBDCs with \u201cprivate sector collaboration and interoperability\u201d for existing payment systems. <\/p>\n

\u201cIf well-designed, a CBDC could offer access to a safe, instant and efficient digital means of payment for all population groups, including less digitally savvy groups of society,\u201d said Deutsche Bundesbank executive board member Burkhard Balz on Wednesday. \u201cIt would also be beneficial if CBDC could support offline payments. People would benefit from a digital and cost-effective cash alternative to choose from.\u201d<\/p>\n

Among the 81 countries surveyed \u2014 representing 76% of the world\u2019s population \u2014 25 were considered to have \u201cadvanced economies\u201d including the United States and Japan, the majority of which said stablecoins pegged to and backed by fiat currency had \u201csome potential\u201d as a means of payment. In contrast, more than 60% of overall respondents said cryptocurrencies had \u201ctrivial or no use\u201d around domestic payments, and roughly 40% responded the same for crypto\u2019s use around cross-border payments.<\/p>\n

Related: <\/em><\/strong>BIS Innovation Hub partners with Fed to support analysis of digital assets<\/em><\/strong><\/p>\n

The BIS released a paper in April detailing how\u00a0some central banks saw CBDCs as a catalyst for innovation and development while others expected the digital currency to work as a complement to existing systems. In March, the\u00a0international institution completed a pilot program for international settlements using CBDCs with the central banks of Australia, Malaysia, Singapore and South Africa.<\/p>\n<\/div>\n