he Bank for International Settlements (BIS) recently conducted a study on central bank digital currencies (CBDCs), finding that 86% of central banks worldwide are exploring the benefits and drawbacks of CBDCs. As the COVID-19 pandemic continues to push this exploration, some central banks are moving into more advanced stages of CBDC engagement, progressing from conceptual research to practical experimentation. This is especially important in emerging markets and developing economies, where central banks have stronger motivations such as increased financial inclusion and payment efficiency objectives. It is important to note that, while we see front-runners like the Bahamas actively launching solutions (at least in pilot phases), many central banks seem to be more caution in their explorations and remain unlikely to issue CBDCs in the foreseeable future.
Explore this in greater detail in this insightful BIS special report.