A recent survey by the Bank for International Settlements (BIS) reveals that only 12% of central banks plan to issue retail central bank digital currencies (CBDCs) in the mid-term. This indicates a significant shift, as the focus is now more on wholesale CBDCs.
According to the 2023 BIS survey results, the likelihood of wholesale CBDCs being issued within the next six years is higher than that for retail. The survey suggests there could be nine wholesale CBDCs in circulation by the end of this decade. Central banks are particularly interested in wholesale CBDCs to enhance cross-border payments, addressing issues like high costs and low speed.
For retail CBDCs, more than half of the central banks are still exploring issues like holding limits and offline options. However, their interest in wholesale CBDCs lies in enabling new functionalities like tokenization, composability, and programmability.
The strategic focus on wholesale CBDCs underscores the long-term goal of improving global financial systems and making cross-border transactions more efficient and transparent.
