The issue of digital currencies and crypto-assets has been one of the hottest topics for the last couple of months, and BIS presented a four-year survey on central banks digital currencies (CBDC). According to the report, major financial institutions of diverse countries increased their interest in stablecoins, switching from exploring to proof of concept and testing stages. Login Casino is at the forefront of the most interesting cryptocurrency news, so it explains the survey findings in more detail.
Even though the number of news around the digital currencies is unstoppably increasing, there are not so many numbers to rely on due to the innovative nature of the topic. BIS (Bank of International Settlements) has carried out a four-year survey on the central banks (CBs) and their attitude and steps towards the implementation of stablecoins. The research comes with the results collected from 21 countries with advanced economies (AE) and 44 states with emerging markets and developing economies (EMDEs).
Central banks are becoming more interested in stablecoins
The survey's first and foremost outcome is the increased engagement of the state's financial structures in digital currencies from 65% in 2017 to 86% interested in 2020. At the same time, central banks are switching from conceptual surveys to the proof of concept and even pilot implementation stages.
Dividing the motivation in two directions – retail and wholesale – AE and EMDE central banks showed quite different results. Thus, advanced economies demonstrated much lower interest in digital currencies as the financial inclusion instrument both for retail and wholesale. On the contrary, EMDEs mentioned financial inclusion as one of the primary motivations for implementing stablecoins in retail, while the value of digital currencies for wholesale inclusion wasn't so big.
At the same time, AEs are more concerned with security issues for wholesale, while the robustness is similarly vital for both AEs and EMDEs' representatives. Among the expected results comes the importance of financial stability, which is differently reviewed by AEs and EMDEs. The latter review stablecoins as a more effective measure in achieving financial stability in both retail and wholesale. As the outcome, AEs aren't too warned about the domestic payments' efficiency to CBDC, while EMDEs believe that stablecoins can increase internal financial transactions' effectiveness.
Digital currencies aren't the plan for the nearest future, however
One of the survey questions was the attitude of central banks towards possible implementation terms of stablecoins. As mentioned above, most respondents showed a growing interest but didn't see providing digital currencies in the nearest future, with only about 10% likely to offer stablecoins in the nearest three years (which didn't change in the last two years significantly). Nonetheless, the number of central banks that assume fast stablecoins' implementation grew from 16% in 2019 to 21% in 2020.
If to increase the situation's vision from three to six nearest years, about 20% (quite similar numbers for 2019 and 2020) of respondents confirmed they are likely to implement stablecoins in the medium term. Simultaneously, the number of central banks that assumed digital assets implementation in the nearest six years grew up from about 15% in 2019 to about 40% in 2020.
CBs still review cryptocurrencies as niche products
Among the most interesting sections was finding out the attitude of central banks towards cryptocurrencies. CBs primarily look at cryptocurrencies as the trivial payment methods for domestic transactions (about 60% think so). At the same time, the cross-border operations via decentralized tokes are regarded as for niche usage or trivial needs (about 35% on average for both items).
Interestingly, the number of concerns related to the influence of cryptocurrencies on the financial stability of CBDCs increased in the last years. Less than 60% of respondents were sure that decentralized coins had an impact on governmental-ruled finances in 2019, while in 2020, this number was almost increased by 10%.