A 2021 survey by the Bank for International Settlements released today shows that central banks are advancing their efforts in researching central bank digital currencies (CBDCs). Sixty percent of the central banks state one of the reasons for that accelerated activity is the growing adoption of cryptocurrencies. The proportion of banks engaged in CBDC work is now 90% up from 86% last year.
More than two thirds, 68% of central banks say they are likely or will possibly issue a retail central bank digital currency in the short to medium term (six years), with the majority in the four to six year timeframe. Retail CBDCs ranked only marginally ahead of wholesale CBDCs (used only by banks) at around 30% in the short term. There was a significant uptick in the number of central banks that are pursuing both wholesale and retail CBDCs.
While the perception is a greater emphasis on retail CBDC, and efforts are more advanced on that front, there seems to be a swing back to pursuing interbank CBDCs.
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