According to Reuters reports, the Bank for International Settlements (BIS) today released a survey report shows that it is expected that by 2030, 24 central banks in emerging and developed economies will realize the circulation of digital currency.
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Central banks around the world have been researching and developing their own digital currencies for retail transactions to avoid leaving too much of the digital payment business to the private sector as cash declines accelerate, and some are also considering introducing digital currency mechanisms for wholesale transactions between financial institutions.
In its survey, the BIS found that the majority of new central bank digital currencies (CBDCs) will be found in the retail space, with 11 central banks likely to join countries and territories such as the Bahamas, the Eastern Caribbean, Jamaica, and Nigeria, which have already piloted retail versions of their digital currencies by the end of 2022.
The report’s authors also wrote: “Enhancing cross-border payments is one of the key drivers for central banks to work on wholesale versions of CBDC.”
The Swiss National Bank said in late June that it would issue a wholesale version of the CBDC on the Swiss Digital Exchange, the European Central Bank is expected to launch a pilot of the digital euro in 2028, which will cover a population of 260 million. Two other large emerging economies, India and Brazil, plan to launch digital currencies next year.
The BIS also said the proportion of central banks already working on at least some kind of CBDC rose to 93% in its survey, with 60% saying the emergence of cryptocurrencies had accelerated their work. the BIS said “if cryptocurrencies are widely used for payments, they may pose a threat to financial stability.”
