• According to a survey by the Bank for International Settlements (BIS), 93% of central banks are already researching central bank digital currencies (CBDCs).
• There could be as many as 24 live CBDCs by 2030, with 15 retail and 9 wholesale.
• Emerging markets and developing economies are leading CBDC adoption, driven by financial stability, cross-border payments efficiency and financial inclusion reasons.
Survey of Central Banks on Central Bank Digital Currencies
According to a survey by the Bank for International Settlements (BIS), 93% of central banks are already researching central bank digital currencies (CBDCs). The survey was conducted from October to December 2022 with 86 central banks, asking them whether they were working on a retail, wholesale or both types of CBDC, how advanced the work was, and their motivations.
Number of Live CBDCs by 2030
The survey predicts that there will be up to 15 retail and nine wholesale CBDCs in circulation by 2030. To date, there are only four CBDCs in circulation: in the Bahamas, the Eastern Caribbean, Jamaica and Nigeria.
Geoeconomic Adoption of CBDCs
Geoeconomically speaking, nations within emerging markets and developing economies are leading CBDC adoption. Their share in piloting the retail (29%) and wholesale (16%) CBDCs almost doubles that of advanced economies which stands at 18% and 10%, respectively. Both developing and advanced economies mostly share the motivation behind their CBDC projects — financial stability and cross-border payments efficiency. Developing countries are more often driven by financial inclusion reasons.
CBDCS Pilot Projects
Over half of all central banks surveyed reported conducting experiments or working on a CBDC pilot project. Almost a quarter have already launched their own retail CDBC projects while the number is much lower when it comes to wholesale CDBC projects. The share of those likely to issue a retail CDBC within three years has grown from 15% to 18%. At present 68% state they are not readt to issue any type of CDBC “any time soon”.
Indian Digital Rupee Negotiations
At the end of June 2021 Reserve Bank Of India reported ongoing negotiations with at least 18 other Central Banks regarding possibility of cross border payments via its own CDBC – “Digital Rupee”. In July 2021 Federal Reserve Bank Of New York’s Innovation Center completed its proof-of-concept related to regulated liability network for a CDBC .