The arrival of "imminent" central bank digital currencies

Credit: Pete Linforth – Pixabay

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1 According to a report by the Bank for International Settlements, from now on 20% of 66 central banks plan to launch a digital currency (CBDC) within six years. They were only 10% a year earlier.

1.1 10% of central banks envisage a CBDC within 3 years

1.2 "We must act more quickly" urges Benoit Coeure

1.3 Related posts:

According to a report by the Bank for International Settlements, from now on 20% of 66 central banks plan to launch a digital currency (CBDC) within six years. They were only 10% a year earlier.

The broadcast of central bank digital currencies no longer concerns only a few states in the world. Thinking is now international. The ECB, the BIS and five major central banks announced this week to join forces for better assess the potential of digital currencies.

But a report from the Bank for International Settlements, BIS, also highlights the growing interest of central banks in CBDC. Indeed, among the 66 central banks questioned, 20% today declare the probable issue of such currency in the next 6 years.

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10% of central banks envisage a CBDC within 3 years

For comparison, only 10% made this observation a year earlier. Better, one in ten central banks cites likely CBDC launch in the next three years. Proof therefore of a growing desire on the part of central bankers to take hold of this innovation.

Their number should continue to increase over the years. A large majority of central banks are currently thinking about regulated digital currencies.

No less than 80% of them say they are currently examining this technology. This represents an increase of 10 points in just one year. Another illustration, no doubt, of the catalytic role played by Facebook and its stablecoin project Libra.

This is also the opinion shared by a former officer of the Bank of Japan interviewed by Reuters. The latter, alongside four other central banks, but also the ECB and the BIS, formalized this week the creation of a dedicated working group.

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"We must act more quickly" urges Benoit Coeure

The experts brought together by these central banks are responsible for assessing the cases of use of CBDC; choice of economic, functional and technical design, including cross-border interoperability; and sharing knowledge on emerging technologies.

The task force will be co-chaired by the Vice-Governor of the Bank of England, Jon Cunliffe and by Benoit Coeure, former member of the Executive Board of the European Central Bank.

A few months earlier, the Frenchman made no secret of the need to move quickly on this subject of the CBDCs, under pressure from Libra.

It is out of the question to allow them to develop in a regulatory vacuum for their financial services activities, it is too dangerous. We must act faster than we have been able to do so far, ”he urged.