Reserve

Bank

President Donald Trump

Donald Trump

<h2 id="key-points">Key Points</h2>
<ul>
 <li>The US House of Representatives has passed a bill to ban the Federal Reserve from issuing a Central Bank Digital Currency (CBDC), but interest in CBDCs continues to grow globally.</li>
 <li>94% of central banks are now exploring CBDCs, with the majority likely to implement wholesale CBDCs rather than retail CBDCs in the next six years.</li>
</ul>
<p>Despite the recent move by the U.S. House of Representatives to ban the Federal Reserve from issuing a Central Bank Digital Currency (CBDC), the global interest in CBDCs continues to grow.</p>
<h2 id="findings-of-the-survey">Findings of the survey</h2>
<p>A recent survey by the Bank for International Settlements (BIS) revealed that 94% of central banks are exploring CBDCs, a rise from 90% in 2021.</p>
<p>The survey included 86 banks and found that these banks are more likely to implement wholesale CBDCs rather than retail CBDCs in the next six years.</p>
<p>Wholesale CBDCs facilitate transactions between banks and financial institutions, while retail CBDCs are for public use.</p>
<p>BIS researchers stated that central banks are proceeding at their own pace, taking diverse approaches and considering different design features.</p>
<p>For retail CBDCs, more than half of central banks are considering holding limits, interoperability, offline options, and zero remuneration.</p>
<h2 id="global-interest-in-digital-currencies">Global interest in digital currencies</h2>
<p>Countries around the world have been considering digital currencies for years, with China being an early pioneer. Nigeria and the Bahamas were among the first to issue their own CBDCs.</p>
<p>Former U.S. President Donald Trump has firmly opposed the idea, vowing to prevent the creation of a U.S CBDC, citing it as a “dangerous threat to freedom.”</p>
<p>Despite the rapid exploration of CBDCs by central banks in advanced economies, the adoption of stablecoins remains relatively modest.</p>
<p>As of May 2024, the total market capitalization of cryptocurrencies stood at $2.7 trillion. Stablecoins constituted only a small fraction, accounting for just 6% of the cumulative crypto market cap, which amounts to approximately $161 billion.</p>
<p>The report concluded that stablecoins are rarely used for payments outside the crypto ecosystem. About two out of three responding jurisdictions have or are working on a framework to regulate stablecoins and other cryptoassets.</p>
<p>As things unfold, it would be interesting to see how discussions on digital currencies shape global economic policies and financial innovations.</p>

Central Banks Show Soaring Interest in CBDCs, BIS Survey Reveals

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CoinEagle.com

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