CBDCs: It’s time for action
Central banks have been exploring the possibility of issuing a retail central bank digital currency for many years but, as yet, very few have deployed one.
A new report by OMFIF, produced in partnership with Giesecke+Devrient, reveals how central banks’ opinions on issuing a retail CBDC are evolving. While many central banks believe they will soon be ready to issue, some are perhaps not sufficiently concerned about the pace of change in the payments ecosystem.
Despite the long wait for CBDC issuance, OMFIF’s survey provides reason for optimism. Many of the technical challenges involved in issuing a CBDC have been overcome in the past year.
Key findings:
- Three-quarters of central bank survey respondents expect to issue a CBDC. Where 34% expect to issue one in 3-5 years, 91% have done or will conduct feasibility studies.
- One-third of central banks have delayed their issuance timelines. This is for a variety of reasons, including economic situations and political will.
- Financial inclusion and preserving central bank monetary sovereignty are the leading motivations for emerging market central banks (44%) and developed market central banks (50%), respectively.
- Central banks have made remarkable progress in addressing the major technical requirements of issuing a CBDC. The biggest jumps have been in interoperability, cybersecurity and offline payments.
- Previously ranked as the most challenging feature to deliver, 20% of surveyed central banks report improved satisfaction with progress in offline payments, up from 0% in 2023.
- Central banks' focus is turning to optimising user experience. The share of respondents that identified it as the most challenging area more than doubled to 27%.
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