A Bank for International Settlements survey found central banks had expanded work on digital currencies, with more than half of 81 respondents developing systems or running experiments. The BIS conducted the survey in autumn 2021.
Participating jurisdictions represented almost 76% of the world’s population. Fifty-six respondents came from emerging and developing economies.
Around 20% were developing or testing a retail central bank digital currency (CBDC). Retail CBDCs serve consumers and businesses. Wholesale versions support transactions between financial institutions.
Far fewer respondents were working on wholesale digital currencies. The report said 68% expected retail CBDC issuance in the foreseeable future.
Read: Ionic Digital Shares Could Reach $151, Sachem Head Says
Payment efficiency, financial inclusion and faster cross-border transfers have encouraged research. Some governments also view sovereign digital currencies as tools for protecting monetary control.
About 70% of respondents were studying how stablecoins could affect monetary and financial stability. Roughly one-quarter were examining cryptocurrencies more broadly.
Read: European Central Bank Rate Hikes Priced Higher After Oil Tops $86
An earlier BIS survey in 2019 covered 66 central banks. Only one in 10 respondents then considered digital currency issuance likely within three years.
Read: UAE Completes First Government Transaction Using Digital Dirham
The proportion nearly doubled when the timeframe extended to six years. The Bahamas had already issued the Sand Dollar, while China and Nigeria were developing or operating retail CBDC programmes.
