‘Ready, Steady, Go’? Results of the 3rd BIS Survey on CBDC

The Bank of International Settlements (BIS) received 65 responses to its latest Central Bank Digital Currency (CBDC) survey of which 21 were from Advanced Economies (AE) and 44 from Emerging Market/Developing Economies (EMDE). The results are published in BIS Papers 114, authored by Codruta Boar and Andreas Wehrli.

Although those who reply change each year, a number of clear trends are evident: 

• A move from conceptual research to practical experimentation.

• The motivation to introduce CBDCs is defined by local circumstances. Although the BIS has defined five core reasons, the other category contains nuances and motivational spider charts reflect distinct differences.

• Those who are minded to introduce CBDCs are firmer in this thinking and are responding accordingly; those who have reservations are slowing down or pulling back. 7/8 of central banks in the advanced stage of investigation are EMDE countries.

• Increased thinking about collaboration around cross border use of CBDCs and the need to find common policy grounds.

• A new awareness that cash use may decline.

• A growing awareness of the implications of other countries introducing CBDCs that their citizens might choose to use.