A recent survey by the Bank for International Settlements (BIS) reveals a notable shift in the timeline for Central Bank Digital Currency (CBDC) issuance. Compared to the previous year, central banks are now more inclined to pursue CBDCs as a medium-term objective rather than an immediate one.
According to the BIS survey, conducted in 2023, 94 percent of the participating central banks are actively exploring CBDCs. While central banks across the globe are engaging with digital currencies, their progress and approaches vary significantly.
Central banks in advanced economies are particularly focused on wholesale CBDCs, aiming to improve cross-border payments by addressing issues such as high transaction costs, slow processing speeds, limited access, and lack of transparency.
In contrast, the exploration of retail CBDCs is more centered on understanding their potential impact on monetary policy and the banking sector.
The survey highlights a key trend: central banks are increasingly postponing the rollout of digital currencies. Compared to last year, there is now a stronger preference for medium-term implementation of CBDCs rather than immediate deployment. This shift indicates heightened uncertainty surrounding the issuance of digital currencies. Overall, central banks are more inclined to introduce wholesale CBDCs within the next six years, as opposed to retail CBDCs.
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