70 percent of central banking institutions are developing crypto without a hurry

70 percent of central banking institutions are developing crypto without a hurry
Jan 11, 2019 by Rico Wise

Per the survey results, a wide range of incentives leads to a growing number of central banking institutions that research central banking digital currency (briefly CBDC). Nevertheless, only a number of such banks have plans to issue its CBDC in the upcoming ten years’ period.

The survey states that as much as 70 percent of the central banking institutions are already involved in CBDC developments, or intend to become engaged in the upcoming future. This represents a small growth from 2017’s results, when the percentage was approximately 65%. The majority of central banking organizations that are not currently involved and will not become involved in CBDC development hail from smaller countries or have more urgent matters to deal with.

The banks that are involved in the CBDC developments include 31% that are focusing on general purpose CBDC, and 13% are concentrating on wholesale CBDC. Another 56 percent are developing both kinds of CBDC at once. There is a range of reasons for opting for both CBDCs at the same time: safety standards and domestic effectiveness are the key incentivizing factors for central banking institutions. Among the least necessary factors are, evidently, financial inclusion for wholesale CBDCs and effectiveness of international payments for general purpose ones.

The survey also presented the findings according to which the reserve banks all over the globe are partnering with each other in terms of PoC development, specifically on settlement of securities and international settlements.