Advancing in tandem - results of the 2024 BIS survey on central bank digital currencies and crypto

Overview

The 2024 BIS survey highlights that central banks are increasingly involved in exploring central bank digital currencies (CBDCs), with 91% of the 93 surveyed banks engaged in this work. Wholesale CBDCs are generally at more advanced stages than retail CBDCs.

Key Insights

• CBDC Exploration: 91% of central banks are exploring CBDCs, with 85 out of 93 surveyed banks involved.
  • Evidence: BIS survey data
  • Verifiable: Yes
• Wholesale vs Retail: Wholesale CBDCs are at more advanced stages than retail CBDCs.
  • Evidence: BIS survey data
  • Verifiable: Yes
• Drivers: The decline of cash and the rise of tokenisation are major drivers for CBDC exploration.
  • Evidence: BIS survey data
  • Verifiable: Yes
• Acceleration Due to Stablecoins: More than one-third of jurisdictions have accelerated CBDC work due to stablecoin developments.
  • Evidence: BIS survey data
  • Verifiable: Yes

Why It Matters

This matters for the banking sector, particularly central banks, as they navigate the evolving landscape of digital currencies and the implications for monetary policy and financial stability.

Actionable Implications

• Central banks should continue to monitor and engage in CBDC development to maintain monetary control.
• Financial institutions should prepare for potential integration with CBDCs.
• Regulators need to consider the implications of stablecoins and cryptoassets on financial stability.