CBDCs Are Now Being Considered By Every Country In The World?

Are CBDCs Being Considered By Every Country In The World?

According to a report, over 90% of central banks are engaging in CBDC work. The Bank for International Settlements (BIS) surveyed 81 central banks, finding that over 60% of them are working on proof-of-concept and over 20% are running pilots in 2021. In 2022 alone, the number of banks announcing a CBDC review nearly doubled.

These CBDCs are focused on both wholesale and retail, and the majority of banks want to work with the private sector. This two-tiered architecture is now one of the most common among central banks.

When it comes to a more specific forecast on how CBDCs will turn out, more than half of the banks say there is a good chance they will issue one.

Stablecoins are also included in the report, with over 70% of banks claiming to be looking into the possible impact of stablecoins on financial stability, a percentage that has actually decreased over time.

CBDCs have seen increased attention and quick development in the previous 18 months, thanks in part to the emergence of stablecoins and DeFi.

Governments and central banks have begun to see the benefits of blockchain-based currencies, such as quicker transaction times, lower transaction costs, and more security.

China is the largest economy to participate in the testing. Mexico is the latest country to provide an update on its CBDC, with the governor of the central bank stating that it will be operational by 2025. In the meanwhile, India plans to test the digital rupee later this year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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