Wednesday, May 29, 2024

BIS Survey: Majority of Global Central Banks Engaged in CBDC Work

The Bank for International Settlements (BIS), an institution dedicated to fostering international cooperation among central banks worldwide, has published the findings of its 2022 survey on central bank digital currencies (CBDCs) and cryptocurrencies. The survey reveals that a significant 93% of the 86 participating banks are actively involved in various aspects of CBDC-related initiatives.

BIS: 93% of Central Banks Engaged in CBDC Activities

The Bank for International Settlements (BIS), often referred to as the central banks’ bank, has unveiled the results of its comprehensive 2022 survey on central bank digital currencies (CBDCs) and cryptocurrencies. The accompanying report, titled “Making Headway,” highlights that 93% of the surveyed central banks are “engaged in some form of CBDC work, with over half conducting concrete experiments or piloting programs.”

The report indicates that these figures indicate a diminishing level of uncertainty regarding the short-term issuance of CBDCs. However, while some central banks are less inclined to launch a retail CBDC in the next three years, others are more inclined to do so. Nevertheless, the concept of wholesale CBDCs, intended as a payment infrastructure between private banks, is gaining traction, with the proportion of central banks likely to issue this type of currency more than doubling since the previous survey.

The motivations for pursuing CBDC issuance vary among central banks, but the document highlights the improvement of cross-border payments as one of the primary driving forces behind CBDC research. In contrast, in emerging markets and developing economies, CBDC research is predominantly motivated by objectives related to financial inclusion.

Regarding Crypto and Stablecoins

The advent of stablecoins and cryptocurrency assets has spurred the traditional financial sector to explore innovative solutions. The survey reveals that 60% of the consulted central banks have expedited their CBDC efforts due to the presence of these alternative digital currencies.

The issuance of stablecoins has raised concerns among currency issuers regarding potential impacts on their economies. The BIS survey indicates that 70% of central banks are examining the potential instability that stablecoins could introduce, with 40% assessing the extent of crypto asset and stablecoin usage within their jurisdictions.

However, it is worth noting that stablecoins and crypto assets are primarily utilized within decentralized finance platforms and cryptocurrency exchanges, and their adoption for remittances and retail payments remains limited, according to central banks’ reports.

What are your thoughts on the findings of the 2022 BIS survey? Share your opinions in the comments section below.

Frequently Asked Questions (FAQs) about CBDCs

What is the BIS survey about?

The BIS survey is an annual assessment conducted by the Bank for International Settlements (BIS) to gather information on central bank digital currencies (CBDCs) and cryptocurrencies. It aims to understand the level of involvement and progress of central banks in CBDC-related work and explore the impact of stablecoins and crypto assets.

What were the key findings of the BIS survey?

The survey found that 93% of the 86 central banks surveyed were engaged in CBDC-related work at different levels. Over half of them were running concrete experiments or piloting programs. The survey also revealed that stablecoins and crypto assets have accelerated CBDC efforts for 60% of the central banks. Additionally, concerns regarding stability and the impact of stablecoins on economies were prevalent among the surveyed central banks.

What are CBDCs?

CBDCs, or central bank digital currencies, are digital forms of national currencies issued and regulated by central banks. They are intended to serve as a digital counterpart to traditional fiat currencies and are designed to provide secure and efficient means of payment and store of value.

What is the role of the Bank for International Settlements (BIS)?

The Bank for International Settlements (BIS) acts as the “bank for central banks” and facilitates international cooperation among central banks. It conducts research, provides a forum for policymakers, and offers banking services to central banks and international organizations. The BIS plays a crucial role in promoting financial stability and supporting the development of sound monetary and financial policies.

What are stablecoins?

Stablecoins are a type of cryptocurrency that aim to maintain a stable value by pegging their price to a reserve asset, such as a fiat currency or commodity. They are designed to address the price volatility commonly associated with other cryptocurrencies like Bitcoin and Ethereum. Stablecoins offer the potential for faster, cheaper, and more accessible transactions while attempting to preserve a stable value.

How are CBDCs different from stablecoins?

CBDCs and stablecoins both represent digital forms of currency, but there are key differences between them. CBDCs are issued and regulated by central banks, while stablecoins are typically issued by private entities. CBDCs have the backing and guarantee of the central bank and are considered legal tender, while the value of stablecoins relies on the reserve assets backing them. Additionally, CBDCs are designed to serve as an official means of payment, while stablecoins often function as alternatives to traditional currencies within specific ecosystems.

What are the concerns surrounding stablecoins and crypto assets?

Central banks have raised concerns about stablecoins and crypto assets due to their potential impact on financial stability and economies. The volatility of crypto assets poses risks, and the widespread usage of stablecoins could potentially affect monetary policy, payment systems, and financial stability. Central banks are conducting research to understand and mitigate these concerns while exploring the potential benefits and risks associated with these digital assets.

More about CBDCs

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

5 comments

CryptoFan123 July 12, 2023 - 5:55 pm

wow, BIS found that 60% central banks speed up CBDC work cuz of stablecoins and crypto. that’s a big impact!

Reply
JohnDoe47 July 12, 2023 - 7:49 pm

bis survey said 93% banks into cbdc stuff, that’s huge! but what’s cbdc? stablecoins and crypto assets are a concern tho.

Reply
CryptoTrader21 July 12, 2023 - 11:18 pm

cbdc and stablecoins, the new buzzwords! BIS survey finds 93% banks diving into cbdc action. stablecoins are shaking things up, making banks rethink. gonna keep an eye on this!

Reply
MoneyMatters July 13, 2023 - 12:54 am

bis report shows that cbdc work is on the rise. wholesale cbdc is gaining acceptance, more banks considering it. also, cross-border payments and financial inclusion drive cbdc research.

Reply
TechGeek88 July 13, 2023 - 11:01 am

bis survey sheds light on central banks’ involvement in cbdc. some banks less likely to issue retail cbdc, but wholesale cbdc is getting more popular. crypto and stablecoins are also making waves, raising stability concerns.

Reply

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

Follow us

CryptokenTop

CrypTokenTop is a website dedicated to providing comprehensive information and analysis about the world of cryptocurrencies. We cover topics such as Bitcoin, Ethereum, NFTs, ICOs, and other popular crypto topics. Our mission is to help people learn more about the crypto space and make informed decisions about their investments. We provide in-depth articles, analysis, and reviews for beginners and experienced users alike, so everyone can make the most out of the ever-evolving world of cryptocurrency.

© 2023 All Right Reserved. CryptokenTop

en_USEnglish