By Arnab Shome | Finance Magnates
28, January, 2021
Basel-headquartered, Bank of International Settlement (BIS) has published a survey report on Wednesday which projects the global central banks’ stance towards digital currencies and stablecoins.
The survey found out that two-thirds of the participant central banks are studying central bank digital currencies (CBDCs) and stablecoins, but the majority of their research is still in early stages.
The banking body received responses from 65 central banks, which represent 72 percent of the world’s population and 91 percent of the global economic output.
“Most central banks are now exploring the case for CBDCs in some way and, overall, the survey indicates a continuous move from purely conceptual research to experimentation and pilot projects. Yet despite these developments, a widespread roll out of CBDCs still seems some way off,” the survey report stated.
The latest survey came over a year after BIS conducted similar questioning of the monetary regulators on their stance on digital fiats. Though central banks were initially experimenting CBDCs then, many have moved to pilot programs in the period.
When it comes to CBDC, the Chinese central bank outruns its global counterparts with the ongoing mass pilot across major cities. European central banks are also moving fast with their digital euro preparations, while the Indian monetary regulator has become the latest to jump onto the CBDC wagon.
Cryptos Are Speculative
However, central banks are still skeptical about digital currencies like Bitcoin and Ethereum. BIS even cited the 2020 crypto rally to call this asset class ‘speculative’.
“When it comes to cryptocurrencies, central banks continue to see these as niche products with no widespread use as a means of payment,” the report added. “Conversely, developments in stablecoins are closely watched given their potential for rapid adoption by consumers.”
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