Gaining momentum – Results of the 2021 BIS survey on central bank digital currencies

Most central banks are now exploring central bank digital currencies (CBDCs), and more than a quarter of them are developing or running concrete pilots, according to the latest survey from the Bank for International Settlements.

The fifth annual report on central bank engagement with CBDC – Gaining momentum – Results of the 2021 BIS survey on central bank digital currencies – shows that, among the 81 respondents, work on retail CBDCs, in particular, has moved to an advanced stage.

The Covid-19 pandemic and the emergence of stablecoins and other cryptocurrencies have accelerated the work on CBDC, especially in advanced economies, which put more emphasis on financial stability as a motivation for their involvement.

Globally, more than two thirds of central banks consider it likely or possible that they will issue a retail CBDC in the short or medium term. Central banks see the limited operating hours of current payment systems and the length of current transaction chains the most significant pain points of cross-border payments that could be alleviated with CBDCs.

Many central banks are considering a role for the private sector, for example in customer-facing activities, and are also exploring interoperability with existing payment systems.

Read the full report here: https://www.bis.org/publ/bppdf/bispap125.htm