Today the BIS released its latest central bank digital currency (CBDC) survey, with the number of central banks exploring the topic increasing from 93% in 2022 to 94% in 2023. Compared to the previous year, the expectations for retail CBDC issuances in the medium term (4-6 years) have declined sharply. By 2029 there are now likely to be six new issuances, down from 11 anticipated last year. In contrast, the outlook for wholesale CBDC has remained constant with nine new wholesale CBDCs expected by 2029. Additionally, there’s been a sharp increase in the number of wholesale CBDC pilots launched during the past year.
For example, we’ve reported on Europe’s wholesale DLT settlement trials and new initiatives from the Philippines, Switzerland, South Africa, Singapore, Hong Kong and Korea. The survey showed that the timescale for expected wholesale issuances had extended a little.
While the motivations of advanced economies and emerging markets are quite different, there has been some convergence. Domestic payment efficiencies scored as the top motivation for retail CBDCs for both types of economy with a matching score. Likewise for wholesale CBDC’s the top driver is cross border payment efficiency with very similar scores for each type of economy.
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