93% of the world’s countries are developing their own cryptocurrencies

The concept of CBDCs is attracting considerable interest from most central banks (CBs) in the world. A Bank of Int’l Settlements survey shows that 93% of respondents are actively exploring mechanisms for launching a state-owned cryptocurrency.

Analysts asked representatives of the Central Bank about current efforts, goals, level of progress, and possible initiatives regarding CBDCs. In addition, the BIS tried to understand the intentions of central banks regarding the use of stablecoins. The results of the survey emphasize the great interest of the Central Bank in the cryptocurrency segment.

The Bank of Int’l Settlements survey covered 86 countries representing a significant share of the world’s population. Among the participants, there were 28 countries with developed economies, while the rest were developing countries and countries with low social levels. Experts noted that as of the end of 2022, only a few countries, including the Bahamas, Nigeria, and Jamaica, had taken decisive steps to implement CBDC.

CBDC will be a digital form of national currencies. Central banks will act as issuers directly. The Bank of Int’l Settlements explains: «Central banks still have a high authority and reputation in the global financial market. Against this backdrop, CBDCs are perceived by the international community as more reliable assets compared to alternatives in the decentralized finance segment.

As for the European region, the eurozone countries are also considering the possibility of introducing state-owned cryptocurrencies in the near future. For example, the Central Bank of Italy and the Association of Italian Bankers (ABI) recently announced the launch of the Project Leonidas pilot program to test wholesale CBDC supply options. The initiative will involve 18 commercial banks in the country.

However, not all EU member states are following Italy’s example — Slovakia is even planning to change its legislation to avoid launching the digital euro in its country. Slovak analysts studying the topic of the EU’s unified cryptocurrency fear that the issue of CBDC will jeopardize the privacy of citizens' personal data.