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July 10, 2023   Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Metaverse, NFTs, Digital Identity, Privacy, KYC, AML/ATF, Enterprise, Fintech International, Innovation and Resources, Research   No comments

Central Bank Digital Currencies on the Rise: 15 Retail CBDCs by 2030

Global CBDC Innovation | July 10, 2023

CBDC - Central Bank Digital Currencies on the Rise: 15 Retail CBDCs by 2030

As the digital revolution continues to reshape the global economy, central banks worldwide are increasingly exploring the potential of Central Bank Digital Currencies (CBDCs) to enhance payment safety, efficiency, and monetary policy.

Over 130 Central Banks are Working on CBDCs

  • In the rapidly evolving digital economy, central banks globally are turning their attention to Central Bank Digital Currencies (CBDCs).
  • A recent survey by the Bank for International Settlements (BIS) reveals a significant uptick in CBDC-related activities, with 93% of the 86 surveyed central banks engaged in some form of CBDC work.
  • The development of retail CBDCs, aimed at the general public, is outpacing that of wholesale CBDCs, intended for financial institutions despite significant privacy and security concerns.
  • By 2030, we could witness up to 15 retail and nine wholesale CBDCs in circulation.

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Motivations and Design

  • The primary drivers behind CBDC issuance are enhancing payment safety and domestic payment efficiency. Central banks, particularly those from emerging markets, are actively exploring CBDCs to address specific needs in their regions.
  • However, the potential implications of CBDCs on monetary policy and financial stability remain a focal point of research.
  • While many central banks are still undecided about issuing CBDCs, they are investing heavily in understanding these potential impacts.
  • When it comes to CBDC design, central banks are exploring various options, including account-based or token-based CBDCs, and the possibility of interest-bearing CBDCs.

The survey also highlights an increasing trend of collaboration among central banks and international organizations, sharing experiences and knowledge about CBDCs while the IMF is currently working on a global CBDC platform.  This cooperation is key to navigating the complex landscape of digital currencies and ensuring the stability and efficiency of future financial systems.

NCFA Jan 2018 resize - Central Bank Digital Currencies on the Rise: 15 Retail CBDCs by 2030The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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