According to a survey conducted by the Bank for International Settlements (BIS) in late 2022, 93% of central banks worldwide are actively researching central bank digital currencies (CBDCs). The survey indicates that by 2030, there could be up to 15 retail CBDCs and 9 wholesale CBDCs in circulation. The report sheds light on the motivations and progress of central banks in their CBDC initiatives.
The survey gathered responses from 86 central banks, revealing that more than half of them are currently experimenting or piloting CBDC projects. Among these, almost a quarter have already started testing their retail CBDCs. In contrast, the number of wholesale CBDC projects is significantly lower, accounting for only half of the retail CBDC figures.
Emerging markets and developing economies (EMDEs) are at the forefront of CBDC adoption, with a higher share of central banks piloting both retail (29%) and wholesale (16%) CBDCs compared to advanced economies (AE) at 18% and 10%, respectively. While both EMDEs and AEs cite financial stability and cross-border payments efficiency as key motivations behind their CBDC projects, EMDEs are more driven by the goal of promoting financial inclusion.
The survey also reveals that the percentage of central banks likely to issue a retail CBDC within the next three years has grown from 15% in the previous year to 18%. However, 68% of central banks still express their unreadiness to launch a retail CBDC in the near future. Currently, only four CBDCs are in circulation, namely in The Bahamas, the Eastern Caribbean, Jamaica, and Nigeria. However, based on the responses from central bankers, the survey predicts that by the end of the decade, there could be 15 retail and 9 wholesale CBDCs live.
Notable developments in this space include ongoing negotiations between the Reserve Bank of India and 18 central banks worldwide for potential cross-border payments leveraging its proposed CBDC, the “digital rupee.” Additionally, the Federal Reserve Bank of New York’s Innovation Center recently completed a proof-of-concept for a regulated liability network supporting a CBDC.
The survey report provides valuable insights into the future landscape of CBDCs, highlighting the increasing interest and progress made by central banks worldwide. It showcases the evolving role of digital currencies in achieving financial stability, enhancing cross-border payments efficiency, and promoting financial inclusion.