Research confirmed that more than 90% of the Central Banks are engaged in the Central Bank Digital Currency (CBDCs).
Central Bank Digital Currency (CBDCs) are specially engineered concept-based centralized digital currency Ideas, which came into origin after the entry of stable coins like concept use cases in the crypto industry. At present time, China is leading in the race of CBDCs, with its Digital Yuan.
Recently the international monetary institution (BIS) surveyed 81 Central Banks and asked about their stances on CBDCs and their plans to launch. Around 90% of the participants admitted that they are working forward regarding the CBDC-based works.
Only half of the central Bank participants said that they are working on the development of CBDC or doing “concrete experiments”.
“Globally, more than two-thirds of central banks consider that they are likely to or might issue a retail CBDC in either the short or medium term. Central banks consider CBDCs capable of alleviating key pain points such as the limited operating hours of current payment systems and the length of current transaction chains.”
Besides the study and research on Central Bank Digital Currency (CBDCs) craze among Central Banks, BIS reported that stablecoins may play an important role in the global payment system if stable coins will be backed by a single type of fiat currency. At the same time, institutions dismissed the stablecoins backed by commodities or digital assets like bitcoin.
Earlier this, BIS conducted a similar survey in 2019 and found that 80% of the Central Banks were working to introduce CBDC. In that survey, only 66 Central Banks were participants.
At that time, the majority of the Banks said that their engagement in CBDCs was only because of the priority to provide payment safety.
At present time, the Chinese Central Bank is working at its best to push the adoption of its Chinese CBDC, or e-CNY, or Digital Yuan. Even digital yuan front-end bank supporters are giving a significant amount of airdrop among retail users.
No doubt that the Chinese CBDC was full of controversy, since its launch, because of its centralized nature. But still, China is at the top in this race, with its CBDC.
Few countries’ Central Banks said that Digital Yuan may not be good because development work on Chinese CBDC was fast with less care and also there will be a lack of efficiency.
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