41% of central banks involved anticipate implementing a functional central bank digital currency (CBDC) by the year 2028 while close to 70% hope to have one within ten years.
This is according to the Official Monetary and Financial Institutions Forum (OMFIF) survey by Ripple which discovered that the sentiment towards CBDCs is turning positive with 30% of the respondents having become more inclined to issue a digital currency in the last 12 months.
Nevertheless, 17% of the central banks involved in the research have excluded the possibility of introducing a central bank digital currency (CBDC).
As outlined in the study report, this shift in perspective may indicate that the investigative efforts and feasibility studies conducted by central banks are yielding positive outcomes.
The predominant motivation among the majority of respondents from emerging markets is to enhance financial inclusion. In contrast, many central banks from developed markets view the adoption of central bank digital currencies (CBDCs) as a defensive strategy aimed at safeguarding monetary sovereignty.
Just 20% of the respondents identified the enhancement of payment system efficiency as their primary motivation for pursuing the implementation of central bank digital currencies (CBDCs).
According to the survey results, 68% of central banks in developed markets view the low adoption of central bank digital currencies (CBDCs) as a significant worry. Their second-highest concern is the potential disintermediation of banks, one that has been acknowledged by the Central Bank of Nigeria.
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Conversely, in emerging markets, only 37% see low CBDC adoption as their primary concern. A comparable percentage of central banks in these markets express cybersecurity as their main worry.
Approximately 30% to 40% of central banks are engaging external assistance in various domains, including user experience, privacy, cybersecurity, and scalability.
The reliance on external providers is expected to increase, the report found. If all respondents intending to partner with third parties follow through, these proportions will surge to 60% to 70% across these four areas.
You can find the full report here.
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