{"id":23071,"date":"2022-04-05T05:01:18","date_gmt":"2022-04-05T04:01:18","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=23071"},"modified":"2022-04-05T05:01:28","modified_gmt":"2022-04-05T04:01:28","slug":"research-reveals-more-than-80-of-central-banks","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/research-reveals-more-than-80-of-central-banks\/","title":{"rendered":"Research reveals more than 80% of central banks are considering CBDCs"},"content":{"rendered":"\n
Central banks<\/a> are increasingly debating whether to issue their own digital currencies to the general public, the so-called retail central bank digital currency (CBDC).<\/h5>\n\n\n\n
\"Research
Research reveals more than 80% of central banks are considering CBDCs<\/figcaption><\/figure>\n\n\n\n

According to a study undertaken by accounting company PwC, more than 80% of central banks are interested in developing a Central Bank Digital Currency \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>(CBDC) or have already done so.<\/p>\n\n\n\n

On Monday, April 4, the second annual Global CBDC Index study was issued, which gauges a central bank's maturity in implementing its own digital currency<\/a>. For the first time, the study featured an overview of stablecoins.\u00a0<\/p>\n\n\n\n

 \u201cover 80% of central banks are considering launching a CBDC or have already done so\u201d according to Haydn Jones, Blockchain and Crypto Specialist at PwC U.K., in the research.<\/p>\n\n\n\n

Retail and wholesale CBDCs ranked 100\u00a0<\/h2>\n\n\n\n

The study assigns a score of 100 to both retail CBDCs, which are granted for broad public use, and wholesale CBDCs, which are issued for use by financial institutions having accounts with the central bank.<\/p>\n\n\n\n

According to the survey, retail CBDCs have attained a higher degree of maturity than their wholesale counterparts. Nigeria's “eNaira,” for example, scored a 95, indicating that it is the most developed currency in both retail and wholesale.<\/p>\n\n\n\n

The Bahamas was also notable in the retail sector since it was the first country to issue a CBDC, the Sand Dollar. Thailand made the list for its research and testing of a CBDC disclosed in August, while the Jamaican Jam-Dex is set to launch this year.<\/p>\n\n\n\n

Thailand and Hong Kong topped the wholesale category with their joint mBridge project focusing on cross-border payments, while Singapore and France were also highly regarded for their ongoing CBDC project investigation.<\/p>\n\n\n\n

Jones also highlighted the maturity and readiness of central banks<\/a> throughout the world at the moment. He stated, “<\/p>\n\n\n\n

\u201cCountries are at differing levels of maturity with CBDCs <\/a>and each country has different motivating factors. Increasing financial inclusion, facilitating cross border payments and controlling financial crime are all factors that come into play. We expect CBDC research, testing and implementation will intensify in 2022.\u201d<\/p><\/blockquote>\n\n\n\n

The research gave a rundown of the top 10 USD-pegged stablecoins by market cap, as well as an explanation of how they work and what they're backed by.<\/p>\n\n\n\n

It highlighted that stablecoins <\/a>have become an \u201cintegral part of the crypto ecosystem\u201d and it is \u201cimpossible\u201d for any fund or institution \u201cto be active in crypto without using stablecoins.\u201d<\/p>\n\n\n\n

Goals of CBDC projects<\/h2>\n\n\n\n

The subsequent research and development for CBDC initiatives are naturally guided by the project's goals. These objectives also serve as guidance for making design and technical decisions. <\/p>\n\n\n\n

The objectives vary in each jurisdiction, reflecting variables such as payment system peculiarities and perceived domestic problems. Mandates may also be a factor to consider. <\/p>\n\n\n\n

Central bank rules frequently establish the function of fostering efficient, safe, and secure payment systems, as well as the purpose of establishing efficient and effective monetary policy, all of which may be important to CBDC<\/a>. <\/p>\n\n\n\n

The themes of modernizing and\/or future-proofing countries' payment systems, on the other hand, ran across the aims stated by the central banks examined in this research. <\/p>\n\n\n\n

Modernization refers to enhancing the digitization of the payment system in order to improve it. Future-proofing, on the other hand, is the process of modernizing an already heavily digitalized payment system in order to mitigate future risks connected with continual innovation.<\/p>\n\n\n\n

Central banks participating in CBDC programs have agreed not to jeopardize financial stability or make any abrupt changes to the financial system's structure, according to a Fintech Note research in February 2022.<\/p>\n\n\n\n

All CBDCs now in circulation, whether as official currency or as part of a trial program, are designed with limitations that make CBDCs less competitive than bank deposits. The bulk of central banks is still debating these issues on a theoretical level. CBDC limits are divided into two categories: restrictions on CBDC remuneration and quantitative constraints on CBDC holdings and transactions.<\/p>\n","protected":false},"excerpt":{"rendered":"

Central banks are increasingly debating whether to issue their own digital currencies to the general public, the so-called retail central bank digital currency (CBDC). According to a study undertaken by accounting company PwC, more than 80% of central banks are interested in developing a Central Bank Digital Currency (CBDC) or have already done so. On […]<\/p>\n","protected":false},"author":13,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[5669,5771,8656,5697,8657,5851],"class_list":["post-23071","post","type-post","status-publish","format-standard","hentry","category-news","tag-adoption","tag-cbdcs-2","tag-central-banks-2","tag-government-2","tag-reserve-bank","tag-stablecoins-2"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/23071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=23071"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/23071\/revisions"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=23071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=23071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=23071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}