In a new annual economic report from the Bank of International Settlements (BIS), it was revealed that approximately 90% of central banks worldwide are investigating the feasibility of adopting central bank digital currencies, or CBDCs.
The BIS report, reports Cointelegraph, highlighted the ability of current sovereign fiat money to provide (relative) price stability and public oversight while criticising crypto’s inability to perform “basic fundamental functions of money” and their opacity with regards to accountability to the general public.
However, the report did highlight crypto’s programmable nature as well as the borderless elements of decentralised finance (DeFi) as potential benefits that would make a case for integration into CBDCs. There are currently three live retail CBDCs with 28 pilots. The digital yuan issued by the People’s Bank of China currently holds the dominant position with 261 million users. In addition, over 60 jurisdictions have fast retail payment systems.