41% of Central Banks Expect to Have Operational CBDCs by 2028 — Study
December 27, 2023 | by stockcoin.net
![41-of-central-banks-expect-to-have-operational-cbdcs-by-2028-study](https://i0.wp.com/stockcoin.net/wp-content/uploads/2023/12/41-of-central-banks-expect-to-have-operational-cbdcs-by-2028-study-2.jpg?resize=768%2C432&ssl=1)
![41% of Central Banks Expect to Have Operational CBDCs by 2028 — Study 1 Crash game 400x200 1](https://i0.wp.com/stockcoin.net/wp-content/uploads/2024/08/Crash_game_400x200-1.gif?resize=400%2C200&ssl=1)
A recent study conducted by the Official Monetary and Financial Institutions Forum (OMFIF) has revealed that 41% of central banks expect to have an operational central bank digital currency (CBDC) by 2028. The survey also found that sentiment towards CBDCs is turning positive, with 30% of respondents becoming more inclined to issue a digital currency in the last year. However, the study also highlighted that 17% of central banks have completely ruled out launching a CBDC. Key concerns identified by the report include low CBDC adoption and the potential for bank disintermediation. Additionally, the survey revealed that cross-border CBDC networks and collaboration with the private sector are gaining traction.
▶ [Kucoin] Transaction fee 0% discount CODE◀
17% of Respondents Rule out CBDC Deployment
According to the Official Monetary and Financial Institutions Forum (OMFIF) survey, 41% of central banks expect to have an operational central bank digital currency (CBDC) by 2028. However, the study also revealed that 17% of the central banks that participated in the survey have ruled out launching a CBDC.
The survey indicates that sentiment towards CBDCs is turning positive, with 30% of the respondents becoming more inclined to issue a digital currency in the last 12 months. This change in attitude suggests that the exploratory work and feasibility studies conducted by central banks are yielding favorable results.
Low CBDC Adoption a Key Concern
The OMFIF report highlights a split in the reasons why central banks want to issue CBDCs. For most emerging market respondents, the primary motivation is to improve financial inclusion. On the other hand, many developed market central banks view CBDCs as a defensive play to preserve monetary sovereignty. Only 20% of the respondents cited the efficiency of payment systems as their motivation for deploying CBDCs.
The survey findings reveal that 68% of central banks from developed markets see the low adoption of CBDCs as a major concern. They also identify possible bank disintermediation as their second-highest concern. In contrast, only 37% of respondents from emerging markets view low adoption as their primary concern. A similar percentage of central banks from both developed and emerging markets cite cybersecurity as their main concern.
Motivations for CBDC Deployment
The motivations for deploying CBDCs vary between developed and emerging markets. Emerging markets are primarily driven by the goal of improving financial inclusion, aiming to provide access to digital financial services for underserved populations. In contrast, developed markets are more focused on preserving monetary sovereignty and keeping up with the changing financial landscape.
Efficiency of payment systems was not a significant motivation for deploying CBDCs according to the survey. However, it is worth noting that CBDCs have the potential to streamline payment processes and reduce transaction costs.
Split between Developed and Emerging Markets
The survey highlights a division between developed and emerging markets in terms of CBDC adoption. While 41% of central banks expect to have an operational CBDC by 2028, close to 70% of central banks hope to have one within the next ten years.
The split between developed and emerging markets can be attributed to different factors. Emerging markets, with their larger unbanked populations, are more motivated to implement CBDCs to promote financial inclusion. Developed markets, on the other hand, may have a more cautious approach as they seek to preserve existing monetary systems and navigate the potential risks associated with CBDCs.
Concerns of Central Banks
The survey findings shed light on the concerns central banks have regarding CBDC adoption. Developed markets, representing 68% of respondents, view low adoption as a key concern. This apprehension is driven by the fear of slow uptake and potential disruptions to the existing financial system.
In addition to low adoption, both developed and emerging markets express concerns about cybersecurity. With the digitization of central bank currencies, ensuring the security of transactions and protecting against cyber threats becomes a top priority.
Possible Areas of Collaboration
As CBDCs gain traction, collaboration between central banks and private sector players becomes crucial. The survey highlights areas of potential collaboration, including know-your-customer capacity, wallet provision, and payment processing. Collaborative efforts can enhance the effectiveness of CBDC systems and improve user experience.
Furthermore, the concept of cross-border CBDC networks is gaining popularity. As central banks explore the possibilities of interoperability between different digital currencies, cross-border transactions and international payments could become more efficient and cost-effective.
Growing Popularity of Cross-border CBDC Networks
The survey findings indicate that the idea of cross-border CBDC networks is resonating with central banks. By establishing networks that enable CBDC transactions across borders, central banks can facilitate international remittances and foster greater financial integration. The potential benefits include increased transparency, reduced transaction costs, and enhanced financial inclusion on a global scale.
Collaboration between central banks in developing cross-border CBDC networks can pave the way for a more interconnected and efficient global financial system. As more central banks embrace CBDCs, the demand for interoperability and seamless cross-border transactions is likely to grow.
Conclusion
The OMFIF survey reveals an increasing interest in CBDC adoption among central banks worldwide. While 41% of central banks expect to have an operational CBDC by 2028, concerns about low adoption and cybersecurity persist. The motivations for CBDC deployment differ between developed and emerging markets, with financial inclusion and monetary sovereignty being key drivers, respectively.
Collaboration between central banks and the private sector, as well as the establishment of cross-border CBDC networks, holds promise for the future of digital currencies. As central banks navigate the complexities and challenges associated with CBDCs, continued research, collaboration, and international cooperation will be essential in realizing the full potential of CBDCs in the global financial landscape.
▶ [Kucoin] Transaction fee 0% discount CODE◀
![41% of Central Banks Expect to Have Operational CBDCs by 2028 — Study 1 Crash game 400x200 1](https://i0.wp.com/stockcoin.net/wp-content/uploads/2024/08/Crash_game_400x200-1.gif?resize=400%2C200&ssl=1)
RELATED POSTS
View all