94% of central banks’ wholesale CDCCs

The Bank for International Settlements (BIS) found that 94% of central banks surveyed are exploring a central bank digital currency (CBDC).

But according to the report, central banks are more likely to issue wholesale CBDC than retail CBDC in the next six years.

There is a big difference between wholesale and retail CBDC. A wholesale CBCC is used for transactions between banks and other financial institutions, while a retail CDC is for general public use, such as buying a cup of coffee.

This could come as a big relief to market participants as the vocal opposition CBDC considers retail trading a form of tyranny.

Eighty-six central banks participated in the BIS survey, which was conducted between October 2023 and January 2024.

The report also suggests that stablecoins are not used outside of the broader crypto ecosystem.

“In crypto, the survey indicates that to date, stablecoins are rarely used for payments outside of the crypto ecosystem. Moreover, about two out of three responding states have or are working on a framework to regulate stablecoins and other crypto-assets,” the authors wrote.

Currently, the total market capitalization of stablecoins across all chains is approximately $162 billion, an increase of approximately $32 billion at the beginning of the year, according to Defillama.

More than half of central banks considering issuing retail CBCCs are considering safeguards such as restrictions, along with implementing key features such as portability, offline options and zero fees.

CBCCs are a major point of contention, and have become a likely political issue due to the recent US presidential election.

Earlier this week, former US President Donald Trump called for the remaining supply of Bitcoin to be withdrawn from the US. Trump has said that Bitcoin is the last line of defense against CBCC.

The presumptive Republican nominee has said he would not allow a central bank digital currency if elected.

Trump, however, did not explain his position on how issuing more bitcoins would protect the central bank that issues the currency to US citizens.

Earlier this year, Representative Tom Emmer (R-MN) released memos suggesting the Federal Reserve has a pro-CBDC agenda. Then in May, the U.S. House of Representatives passed legislation barring the Federal Reserve from issuing CBCCs without congressional approval.

On May 8, former chairman of the United States Commodity Futures Trading Commission (CFTC) J.

“The global future is all of the above: crypto, CBDCs, stablecoins, and more,” Giancarlo said.

Edited by Stacy Elliott.