Featured Product

    BIS Survey Examines Progress of Central Banks Toward Digital Currency

    January 23, 2020

    BIS published a paper that presents the results of a survey that asked central banks how their plans are developing in the area of central bank digital currency (CBDC). The survey shows that central banks are undertaking extensive work on CBDCs. Additionally, BIS, along with Bank of Canada, BoE, Bank of Japan, ECB, Central Bank of Sweden, and SNB, has created a group to share experiences as they assess the potential cases for CBDC in their home jurisdictions. The group will share CBDC use cases; economic, functional, and technical design choices, including cross-border interoperability; and knowledge on emerging technologies.

    In 2018, BIS and CPMI had asked central banks about their current work on CBDCs, what motivates that work, and how likely they are to issue a CBDC. One year on, the survey has been re-run. This survey gives a global overview of work underway, showing that emerging market economies report stronger motivations and a higher likelihood that they will issue CBDCs. Nearly 66 central banks replied to the survey, with the vast majority taking part for the second time (63 central banks replied to the 2018 survey). The survey was conducted in the later part of 2019, reused the 2018 definitions, and only changed a small number of questions. The survey starts by asking central banks if they work on CBDCs or not; if they do, it further enquires about the type of CBDC and how advanced the work is.

    The survey corroborates the findings from last year’s exercise, especially that a wide variety of motivations drive extensive central bank research and experimentation on CBDCs. The survey shows that about 80% of the central banks (up from 70%) are engaging in some sort of work in this area, with half looking at both wholesale and general purpose CBDCs. About 40% of central banks have progressed from conceptual research to experiments or proofs-of-concept while another 10% have developed pilot projects. Every central bank that has progressed to development or a pilot project is an emerging market economy institution. Globally, emerging market economies are moving from conceptual research to intensive practical development, driven by stronger motivations than those of advanced economy central banks. Nonetheless, their plans appear to be accelerating compared with earlier expectations. Motivations for CBDC research continue to be diverse. Nearly 10% of the surveyed central banks are likely to issue a CBDC for general public in the short term.

    Collaboration through international vehicles, such as the BIS Innovation Hub, will be necessary to avoid any unforeseen international consequences. The collaboration on understanding the impact of private digital tokens may also need to intensify. Stablecoins could find widespread adoption where crypto-currencies have failed. The survey shows that more central banks could be looking at the risks outside the financial system while also exploring ways to improve the system with CBDCs.

     

    Related Links

    Keywords: International, Banking, CBDC, Fintech, PMI, Digital Currencies, Research, Stablecoins, CBDC Group, Blockchain, CPMI, BIS

    Related Articles
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    BoE Announces Changes to Validation Rules for Form BTL

    The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.

    July 20, 2021 WebPage Regulatory News
    News

    BCBS Proposes Changes to Process for Reviewing G-SIB Methodology

    The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.

    July 20, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7281