According to a survey conducted by the Bank for International Settlements (BIS), an overwhelming majority of central banks, 93% to be precise, are actively researching central bank digital currency (CBDC). The survey, conducted between October and December 2022 and involving 86 central banks, revealed that there could be as many as 15 retail CBDCs and 9 wholesale CBDCs in circulation by 2030. Over half of the surveyed central banks are currently engaged in pilot experiments or actively working on CBDC projects. While nearly a quarter are piloting retail CBDCs, the number of wholesale CBDC projects is comparatively lower.
The survey highlights that emerging market and developing economies are leading the way in CBDC adoption. These countries are piloting retail CBDCs at a rate of 29% and wholesale CBDCs at a rate of 16%, nearly double that of advanced economies, which stand at 18 % and 10%, respectively. The motivations behind CBDC projects are similar across both developing and developed economies, focusing on financial stability, efficiency in cross-border payments, and, particularly for developing countries, financial inclusion.
While currently only four CBDCs are in circulation (Bahamas, Eastern Caribbean, Jamaica, and Nigeria), the survey's findings indicate significant growth in the coming years. It predicts that by the end of the decade, 15 retail CBDCs and 9 wholesale CBDCs will be introduced by central banks worldwide. However, despite this trend, a significant proportion, 68% of central banks, still expressed that they are not prepared to issue retail CBDCs in the short term.
Several central banks have already taken steps towards CBDC implementation. The Reserve Bank of India has engaged in discussions with 18 central banks globally to explore cross-border payments through its CBDC, the digital rupee. Additionally, the New York F ed Innovation Center recently completed a proof-of-concept for a CBDC Regulated Accountability Network, demonstrating ongoing efforts and progress in the development of CBDCs.
