Many nations are moving to advanced stages of CBDC engagement, according to a new report by the Bank for International Settlements.
January 28, 2021 | AtoZ Markets – Bank of International Settlement (BIS) has published a survey report on Wednesday which projects the global central banks’ stance towards digital currencies and stablecoins.
Two-thirds of surveyed central banks are studying stablecoins
The survey found out that two-thirds of the participant central banks are studying central bank digital currencies (CBDCs) and stablecoins, but the majority of their research is still in early stages.
“Most central banks are currently exploring different use cases for CBDC. Overall, the survey indicates a shift from conceptual research to experimentation and pilot projects,” the document says.
Of the 60 central banks surveyed, about 60% are still in the early stages of research. About two-thirds of financial institutions are focused on stablecoins, studying their “impact on monetary and financial stability.”
The report mentions only one stablecoin – Tether, and among cryptocurrencies – Bitcoin.
“Central banks continue to view cryptocurrencies as niche products that are not widely used as a means of payment,” the researchers noted. – In 2020, the value of many cryptocurrencies has risen sharply, confirming the thesis about the speculative nature of these assets. This growth has not been accompanied by any changes in the perception of cryptocurrencies as a means of payment. “
The head of the BIS, Agustin Carstens, expressed the opinion that the issuance of digital currencies should be the prerogative of central banks.
“If digital currencies are needed, they must be issued by central banks. If they do this, CBDC can play a significant role in innovation, stimulating competition and improving payment efficiency, ”said the head of an international financial institution.
Earlier, the head of the BIS innovation center, Benoit Kere, expressed the opinion that CBDCs will not crowd out cash.
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