BIS Reveals That Central Banks Are Doing Researches On CBDC Creation
A few days ago, the Bank For International Settlement (BIS) revealed that it would work with central banks to research Central Bank Digital Currency (CBDC) to explore the new tech’s benefits. When China first announced its digital Yuan’s creation, it brought many controversies as many thought the idea was not feasible.
However, many countries are now contemplating creating their own CBDC, which resulted in the organization’s continuous research on the currencies. BIS recently announced that many countries would issue their currency with current research on digital currencies within the next three years. The body also revealed that it surveyed to get feedback from countries concerning their digital currencies’ plans.
BIS surveys on CBDC
The agency announced that over 80% of countries that took the survey admitted that they were still researching the possible advantages and demerits of the innovation. One of BIS’s executives, Agustín Carstens, opined that when nations create their digital currencies, they would act as an alternative payment method and work alongside cash and electronic payments.
Some people believe that those currencies would eradicate cash, but the General Manager clarified that the two would co-exist in the ecosystem. He added that for CBDC to become a reality, the world needs international coordination. Carstens noted that countries still have the power to decide if they would issue those currencies or not. The BIS body can only streamline the creation process and cannot coerce countries into giving it to their citizens.
More countries want to explore the CBDC creation, as opposed to last year with lower figures. Still, a notable portion of central banks revealed that they have no interest in digital currencies, while almost half of the banks replied that they were uncertain. Additionally, more than half of the central banks (60%) do not plan to issue the currency any time soon.
67% of central banks are researching
Based on the survey, 67% of the central banks were already studying to create their digital asset. The financial body received many responses, with over 60 banks responding to the survey, representing a huge percent of the global input.
The participants are mainly developed countries that have the technology to conduct efficient research on the innovation. It’s safe to note that cryptos are the biggest influencers for this new creation because most central banks drew the digital currency idea from looking at cryptos’ functioning. The currency’s creation would give citizens an alternative to cash payment.
With numerous countries revealing that they are working on digital currency creation, the innovation will grow with new ideas. Although most countries are still at the creation’s early phase, the rise from last year’s statistics could mean more countries would announce their digital asset soon, following the crypto industry’s recent boom.
While others are still at the early stages, China is advancing rapidly, with sources claiming that the country had begun creating its digital currency years ago. The European Union shows impressive signs that it would soon put its digital Euro plans into motion.
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