Central banks have made further progress in their work on possible digital versions of their currencies, according to a study published on Wednesday by the Bank for International Settlements (BIS).
Read also: Containment stimulates digital currency projects
By the end of 2020, some 86% of central banks had launched work to assess the advantages and disadvantages of a central bank digital currency (CBDC), i.e. a digital version of their own currency, against 80% at the end of 2020. 2019 and 70% at the end of 2018, the BIS said in a report.
This institution, considered the central bank of central banks, launched an annual survey three years ago to measure the progress of the work.
The year 2020 was marked by important advances, noted the BIS, citing in particular the project of the central bank of the Bahamas, known as the Sand dollar project, which began in October the gradual deployment of a digital version of its currency.
Based in Basel in Switzerland, the BIS also referred to the work of the Swiss central bank, known as the Helvetia project, which carried out a feasibility study for a digital version of the franc, however reserved for
“wholesale”
transactions
with banks and establishments. financial only, not to the general public.
If the majority of work still focuses on the study of concepts, the BIS has also noted an advance in research by central banks which are gradually moving from feasibility studies to the establishment of pilot projects.
At the end of 2020, 60% were working on the study of concepts while 14% were moving towards the establishment of pilot projects.
Central banks favor prudence
For this third annual survey, the BIS also polled central banks on the repercussions of the pandemic, which highlighted the acceleration of cashless payments.
60% of central banks, however, indicated that the health crisis had not changed their priority, central banks favoring caution in the deployment of these long-term projects.
Read also: Brussels will fill the legal void around cryptocurrencies
The majority of central banks, however, are still a long way from launching digital versions of their currencies, the BIS pointed out.
The reflection on central bank currencies had intensified with concerns around the project unveiled in 2018 by the American giant Facebook, which has, however, since revised its ambitions downwards.
The recent surge in bitcoin, on the other hand, leaves central banks unmoved, with most seeing cryptocurrencies as niche products.