The Bank for International Settlements (BIS) declared that while there is an increased volume of research into CBDCs (with a focus on practical use, instead of just conceptual research), it will take several years before the public could start using them.
The BIS did a survey on 65 central banks around the world regarding CBDCs. According to the survey data, 88% of the banks stated that they were considering the pros and cons of the first digital fiat. The percentage is higher than it was a year ago when only 80% of banks declared they were considering it.
According to the research paper: “As a whole, central banks are moving into more advanced stages of CBDC engagement, progressing from conceptual research to practical experimentation.” It has also been revealed that 60% of respondents are currently working on various CBDC experiments and proof of concepts – an increase from the 42% of 2019.
The BIS commented that the development for CBDC differs from country to country based on their needs. The central banks in developing countries have more reasons to offer financial inclusion and payments efficiency. At the moment, seven out of eight CBDC projects come from emerging economies.
Central Banks Tend to Focus on Retail CBDC
The research has also pointed out that many central banks show a greater interest in retail CBDC compared to wholesale CBDC. This means they are more interested in creating fiat digital currencies for daily usage than currencies that would support systemic payments and transfers between banks.
Some of these countries have taken into consideration both options but are not focusing more on retail CBDCs. This means that those central banks are more invested in digital fiats for the people than in digital currencies for the banks.