One In Five People Could Have Access To Central Bank Digital Currencies Within Three Years

One In Five People Could Have Access To Central Bank Digital Currencies Within Three Years
27.01.2020 06:25 am

One In Five People Could Have Access To Central Bank Digital Currencies Within Three Years


Central banks collectively representing a fifth of the world's population say they are likely to issue a general purpose digital currency in the next three years, according to a survey from the Bank for International Settlements.

Following up on a survey from last year, BIS quizzed 66 central banks, covering 75% of the world's population and 90% of its economic output, about their intentions regarding CBDCs.

Some 80% of respondents (up from 70% a year ago) say they are engaged in some form of CBDC work, with half looking at both wholesale and general purpose options. Meanwhile, 40% have moved beyond conceptual research to experiments or proof-of-concepts and 10% have made it to the pilot stage.

The survey reveals a divide between advanced economies and emerging market economies (EMEs): Of the 10% of banks that are at the pilot stage, all are from EMEs. This is partly because these countries have a greater incentive to find a cash alternative that improves financial inclusion and payments efficiency and security.

Although 70% of central banks say it is unlikely that they will issue a CBDC in the foreseeable future, 10% think it is likely they will issue a general purpose option in the short term. With China among the number, this would represent 20% of the global population.

Meanwhile, interest in wholesale CBDCs appears to have cooled: half the central banks that said in 2018 they were likely to issue one in the short term now say they are less likely to do so. As BIS notes, this is consistent with research published by the Bank of Canada and Bank of Thailand which found that DLT faces big challenges to improve on current arrangements.

On non-government backed digital currencies, central banks are seeing no widespread usage. However, with Facebook's Libra looming, 60% are considering the monetary and financial stability of stablecoins.

Related News

Civic and Coincover Announce the First-of-its-Kind Crypto Wallet With a $1 Million Protection Guarantee

Civic Technologies, a leading innovator in digital wallet solutions, today announced that Civic Wallet is the first and only crypto wallet to offer a $1 million (USD) digital... Read more »

Itiviti and Gemini to offer NYFIX connectivity for cryptocurrency customers

Itiviti, a leading technology and service provider to financial institutions worldwide, today announced that Gemini Trust Company, a next generation cryptocurrency exchange and... Read more »

Cybersecurity enables digitalization of the housing market

The DIAS platform, built by a Finnish technology startup Tomorrow Tech, and audited by cybersecurity company Nixu, enables digitalization of the housing market in... Read more » Becomes First Major Crypto Platform to Enable Users to Borrow USD with Crypto, the leading provider of cryptocurrency products including the most popular crypto wallet, has launched Borrow, a new product offering for users to borrow USD-... Read more »

Nogle Invests $3m in First Digital Trust

Hong Kong-based digital asset custody firm First Digital Trust has scored a $3 million investment from Taiwanese venture studio Nogle.

Spun out from FS firm Legacy Trust... Read more »

OKCoin Appoints Hong Fang CEO

OKCoin, a leading fiat-focused digital asset exchange with service in 184 countries, announced today that CEO Tim Byun has been appointed as Global Government Relations Officer... Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel