The Bank for International Settlements (BIS) predicts that there will be 15 retail central bank digital currencies and 9 wholesale central bank digital currencies (CBDCs) by 2030, based on a survey of 86 central banks.
Central banks increasingly support CBDCs
The report said that 93% of central banks are studying CBDCs, and more than 50% have begun to vigorously develop CBDCs, including creating pilot projects.
While only four countries — Nigeria, Jamaica, and the Bahamas — have issued retail CBDCs, the BIS noted that other top banks may follow suit, as 18% of the 86 banks surveyed said they may soon issue a retail national digital currency.
Meanwhile, top banks in countries including the United Kingdom, Peru, India, Canada and the European Central Bank are actively studying the possibility of issuing digital versions of their own currencies.
Additionally, the BIS noted that the growing popularity of cryptocurrencies appears to be an important factor driving central banks’ interest in CBDCs.
“Nearly 60% of central banks surveyed said the emergence of crypto assets and stablecoins has accelerated their work on CBDCs.”
BIS praises the virtues of CBDCs
The report also highlights the multiple advantages of stablecoins. It states that retail CBDCs will improve financial inclusion and payment efficiency, while wholesale CBDCs will enhance cross-border payments.
The BIS said a CBDC would complement the currently existing Faster Payment System (FPS), adding that more than 80% of central banks believe there could be value in having both an FPS and a CBDC.
"Depending on their design, both FPS and retail CBDC could achieve similar goals, such as enhancing financial inclusion and facilitating faster and more efficient domestic and cross-border payments. Furthermore, they could both foster wider innovation and enhance competition, thereby increasing the availability and accessibility of cheaper payment products and services."
However, the BIS noted challenges facing the development of CBDCs, such as uncertainty about the legal basis for issuing such digital currencies.