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- 98% of central banks are working on digital currencies (CBDC).
- Twenty-four central banks globally might introduce their CBDCs by 2030.
The sixth annual survey conducted and published by Bank for International Settlements (BIS) shows that 98% of global central banks are working on developing central bank digital currency (CBDC). The statistics have shown decreased CBDC-related uncertainties in governments and central banks. The survey also said 24 central banks might release their digital coins by 2030.
The survey conducted between October and December 2022 involved data collection from 86 central banks, answering questions regarding their retail work, wholesale, or CBDC types, goals, and advancement levels. The survey also sought the central banks’ opinions on using stablecoins and other cryptocurrency assets in their jurisdiction.
While there were no CBDCs launched in 2022, and Nigeria, the Bahamas, Eastern Caribbean, and Jamaica are the only countries that have not issued a retail CBDC, the survey authors stated that there is a possibility of more on the way, as “18% of central banks indicated in the survey that they are likely to issue a retail CBDC in the near term.”
The 86 central banks that participated in the survey “represent 82% of the world’s population and 94% of global economic output,” with 58% representing emerging market and developing economies (EMDE) and 28% from advanced economies (AE).
Central banks’ participation in CBDC research and development increased from 90% in 2021 to 93% in 2022. The survey’s report authors reported that central banks’ work on CBDCs has made notable progress, and “more than half of central banks are conducting concrete experiments or working on a CBDC pilot.”
The survey consisted of four stages depending on the banks’ progress on CBDCs, including:
- Research and study – banks that are conducting user cases, impact, and feasibility research with any technical development
- Proofs of concept or experiments – banks in the early stages of testing the formative stages of CBDCs development in a controlled, internal environment.
- Pilot/development stage – banks are testing a prototype with a real audience and a restricted number of external/public participants.
- Live – banks have already issued CBDC to the public for widespread use.
The survey showed emerging market and developing economies (EMDE) are more advanced in their CBDC development and adoption than advanced economies (AE). “Moreover, the share of EMDE central banks piloting a retail (29%) and wholesale (16%) CBDC is almost twice as high as in AEs (18% and 10%, respectively).”
Ripple Is Working On CBDC Platform for Central Banks to Issue Their Digital Coins
With the recent surge in central banks adopting digital assets as regal tenders, Ripple is working on a central bank digital currency (CBDC) platform. The platform will allow central banks, financial institutions, and governments to issue digital currencies.
The platform is an enhanced version of Ripple’s Private Ledger that will facilitate management and customization of the entire life cycle of the CBDC by the concerned government institutions. The cycle includes minting, distribution, redemption, and token-burning processes.
Financial institutions can manage and participate in inter-institutional distribution and settlement functions using the CBDC.
Ripple will demonstrate the working of this platform under the e-HKD pilot program managed by the Hong Kong Monetary Authority. The company is also working with Taiwan’s Fubon Bank, under the e-HKD pilot, to build a real estate asset tokenization and equity distribution product.
