The recent survey results published by the Bank of International Settlements produced bullish and bearish sentiments with regard to Central Bank Digital Currency adoption.
While banks in Emerging Market Economies are moving more rapidly toward issuing government-sponsored CBDCs, those in established countries appear to be taking a more cautious stance on the transition from fiat currencies to digital.
1.6 billion people could have access to CBDCs in the next three yearsThat's the most startling finding of the study, which was appropriately titled "Impending arrival - a sequel to the survey on central bank digital currency." Respondents of the survey included 66 banks representing 75% of the world's population and 90% of its economic output.
Ten percent of the banks reported they would issue the first general-purpose CBDCs in the next three years, representing 20% of the world's population.
Banks in advanced economies are more confident in their current institutional systemsLooking at the survey responses from the central banks, it's apparent that some do notice the value blockchain presents to their current systems used to manage currency transfer and issuance.
Advanced economies are cautious about CBDCsAs good as the survey information presented by the BIS is, responding banks may be holding back on their plans to issue CBDCs due to their very competitive nature.
Many of these banks reported that they continue to research digital currencies and the feasibility of issuing their own.
While central banks are moving in the direction of issuing their own digital currencies, central banks in more advanced economies may see less of a need for radical change and development.
Central banks play a critical role in the global economy, so any blockchain implementation has the potential to grow the ecosystem in a positive way.
While central banks from more established countries will proceed cautiously, the strength of blockchain technology will be recognized by government agencies.
Not All Central Banks Have an Interest in CBDCs
Published on Feb 16, 2020
by Cointele | Published on Coinage
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