Stablecoin

Bank

A <a href="https://www.bis.org/publ/bppdf/bispap147.htm" rel="noopener noreferrer nofollow">recent survey</a> from the Bank of International Settlement (BIS) reveals a growing interest in Central Bank Digital Currencies (CBDCs) among Central Banks. Different institutions are taking diverse approaches, carefully considering the design features that best suit their economies.
<h2 id="b-global-cbdc-exploration-picks-up-b">Global CBDC Exploration Picks Up</h2>
The survey, which included participation from 86 banks, found that 94% are actively exploring the creation of digital versions of their national currencies. This figure represents a jump from 90% reported in a similar 2021 BIS survey.
As revealed in an earlier <a href="https://thecoinrise.com/central-banks-must-embrace-cbdcs-ecb-member/" rel="noopener noreferrer nofollow">TheCoinRise report</a>, Joachim Nagel, a member of the European Central Bank (ECB), highlights the importance of CBDCs to Central Banks. Nagel says CBDCs are an important tool to augment the traditional business model of Central Banks.
For years, different countries worldwide have been exploring whether or not to develop a digital currency. China, Nigeria, and the Bahamas were among the <a href="https://thecoinrise.com/nigerias-central-bank-partners-gluwa-to-advance-e-naira-adoption/" rel="noopener noreferrer nofollow">first nations to introduce their CBDCs</a>. In the UAE, authorities have <a href="https://thecoinrise.com/uae-moves-ahead-with-cbdc-in-partnership-with-r3-and-g42-cloud/" rel="noopener noreferrer nofollow">partnered with technology giants R3 and G42 Cloud</a> for wholesale and retail CBDC applications.
<h2 id="b-preference-for-wholesale-cbdc-b">Preference for Wholesale CBDC</h2>
While the overall pace of development varies, there’s a growing focus on experimentation, particularly with wholesale CBDCs. These digital currencies are primarily intended for use between financial institutions. The BIS survey suggests that the issuance of a wholesale CBDC within the next six years is now more likely than that of a retail CBDC, which would be directly accessible to consumers.
While many specific features remain undecided, concepts like interoperability and programmability are frequently being considered for wholesale CBDCs. For retail CBDCs, features like holding limits, interoperability, offline functionality, and zero remunerations appear to be key areas of exploration.
<h2 id="b-stablecoin-mainstream-application-b">Stablecoin Mainstream Application</h2>
Furthermore, the survey touches on stablecoin adoption outside the crypto ecosystem. While CBDC continues to evolve, the BIS survey suggests that stablecoins have yet to gain substantial adoption for mainstream payments.
However, the survey also indicates that a growing number of jurisdictions are establishing or refining regulatory frameworks for stablecoins and other crypto assets. This reflects a cautious but increasingly engaged approach to the broader crypto space. Nevertheless, the stablecoin market recently clinched a key milestone, <a href="https://thecoinrise.com/stablecoin-market-cap-hits-161b-amid-eight-month-growth-streak/" rel="noopener noreferrer nofollow">recording a capitalization of $161 billion</a>.&nbsp;
The post <a href="https://thecoinrise.com/cbdc-seeing-growing-interest-from-central-banks-bis-survey/" rel="noopener noreferrer nofollow">CBDC Seeing Growing Interest from Central Banks: BIS Survey</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

CBDC Seeing Growing Interest from Central Banks: BIS Survey

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