A recent survey conducted by the Bank for International Settlements (BIS) indicates a significant increase in central bank digital currency (CBDC) experiments among central banks. The survey, published in June 2024, shows a 35% increase in proof of concept projects for CBDCs from 2022 to 2023.
The BIS survey reports that 54% of the surveyed central banks are actively experimenting with proofs of concept or the underlying technology for CBDC issuance. Approximately one-third of the institutions have moved beyond the conceptual stage to conduct CBDC pilots, suggesting a growing momentum toward practical implementation.
The survey is reflected in the varying design features being considered, which include interoperability, programmability, transaction limits, and offline usability. These features are prioritized for wholesale CBDCs in advanced economies, while retail CBDCs focus on issues such as holding limits and zero remuneration.
The information from BIS also reveals the regulatory front of the CBDC and stablecoins on the international level. It shows that the proportion of authorities heading towards the adoption of regulation of stablecoins and other crypto assets is around two-thirds of all jurisdictions that have already done it or are yet to do it. This regulatory focus comes amidst the observation that stablecoins, while within the crypto ecosystem are rarely used for transactions.
The survey was conducted with 83 central banks from both the developed and the developing worlds, thus giving insight into the future of CBDCs.
Also Read: US Crypto Regulations Oppose CBDC and stablecoin: JPMorgan
