Eighty-one nations are actually exploring central financial institution digital currencies (CBDCs), based on a brand new tracker. This quantity is 46 extra nations than the quantity in Might final yr. As well as, 5 nations have totally launched their very own digital currencies.
81 Central Banks Discover Launching Personal Digital Currencies
The Atlantic Council’s Geoeconomics Heart unveiled a brand new central financial institution digital forex (CBDC) tracker that includes an interactive database final week.
The Geoeconomics Heart described itself as “a nonpartisan group that galvanizes U.S. management and engagement on the earth, in partnership with allies and companions, to form options to world challenges,” its web site states.
The unique model of the CBDC tracker, launched in April final yr, has been utilized by the U.S. Federal Reserve and the Financial institution of Worldwide Settlements (BIS), the middle claims, including that based on the brand new tracker:
81 nations (representing over 90 % of worldwide GDP) are actually exploring a CBDC. In our authentic report printed in Might 2020, solely 35 nations had been contemplating a CBDC.
The middle famous that “Of the nations with the 4 largest central banks (the U.S. Federal Reserve, the European Central Financial institution, the Financial institution of Japan, and the Financial institution of England), the US is furthest behind” in creating a state-backed digital forex.
Federal Reserve Chairman Jerome Powell stated in February that the digital greenback was a “very excessive precedence” for the Fed. Nonetheless, he emphasised the necessity to “get it proper,” as a substitute of speeding to launch a digital greenback, notably to compete with China’s digital yuan. Nonetheless, the chairman not too long ago stated, “you wouldn’t want stablecoins, you wouldn’t want cryptocurrencies should you had a digital U.S. forex. I feel that’s one of many stronger arguments in its favor.”
In the meantime, “5 nations have now totally launched a digital forex,” the Geoeconomics Heart added. They’re the Bahamas, Saint Kitts and Nevis, Antigua and Barbuda, Saint Lucia, and Grenada.
The middle additional detailed that “14 different nations, together with main economies like Sweden and South Korea, are actually within the pilot stage with their CBDCs and making ready a attainable full launch.”
Josh Lipsky, Director of the Geoeconomics Heart and former senior advisor on the Worldwide Financial Fund (IMF), commented:
Earlier than Covid, central financial institution digital currencies had been largely a theoretical train. However with the necessity to distribute unprecedented financial and monetary stimulus around the globe, mixed with the rise of cryptocurrencies, central banks have rapidly realized they can not let the evolution of cash go them by.
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