- Central banks increasingly explore CBDCs, favoring wholesale versions.
- Early CBDC adoption faces challenges despite advancements in China.
- CBDC future uncertain, but may reshape global finance.
A new survey by the Bank for International Settlements (BIS) reveals growing interest among central banks in exploring Central Bank Digital Currencies (CBDCs), with a majority of respondents favoring wholesale versions over those accessible to the public.
The survey, conducted between October 2023 and January 2024, revealed that 94% of the 86 participating banks are supportive of the idea of a CBDC. This figure marks an increase from the 90% of 81 respondents recorded in 2021.
Furthermore, the surveyed banks indicated a preference for a wholesale CBDC instead of a retail version. A wholesale digital currency is designed for banks and large financial institutions, while a retail CBDC would be accessible to the public.
Several countries have explored the idea of a CBDC, with China, one of its earliest proponents, launching a digital yuan (e-CNY) pilot in 2019. The following year, the Bahamas launched the first CBDC, the SandDollar. Nigeria followed suit in 2021, in…
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