The Bank for International Settlements (BIS) has released a survey revealing that 93% of central banks are now involved in some form of central bank digital currency (CBDC) work, with retail CBDCs taking the lead over CBDCs. wholesalers.

The survey, which collected responses from 86 central banks, shows that more than half of these institutions are not only exploring CBDCs, but are also conducting concrete experiments or working on pilot projects. Progress on retail CBDCs is further along, with almost a quarter of central banks trialing a retail CBDC.

The BIS survey also highlights the perceived value of CBDCs. More than 80% of central banks see potential benefits in having both a retail CBDC and a fast payment system (FPS). The unique properties and additional features that a retail CBDC can offer are considered key advantages.

The emergence of crypto assets and stablecoins has had a significant influence, accelerating the work of CBDCs for nearly 60% of central banks surveyed. However, the survey also notes that stablecoins and other crypto assets are rarely used for payments outside of the crypto ecosystem.

The survey suggests that by 2030, we could see 15 retail and nine wholesale CBDCs in public circulation. This projection reflects the growing interest in digital currencies from central banks around the world.

In terms of motivation, central banks in emerging market and developing economies (EMDEs) are more likely to be guided by motivations related to financial inclusion in their CBDC work. On the other hand, the desire to improve cross-border payments mainly drives work in wholesale CBDCs.

Currently, four central banks have issued a live retail CBDC: Bahamas, Eastern Caribbean, Jamaica, and Nigeria. This development marks an important milestone in the global adoption of CBDCs.

The BIS survey provides a comprehensive overview of the current state of CBDC development and offers valuable insights into the future trajectory of digital currencies. As exploration and experimentation with CBDCs continue, their role in the global financial system will become increasingly important.

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