'Sharp uptick' in central bank CBDC experiments: BIS survey

Some central banks are ramping up their explorations of central bank digital currencies, a new survey shows.

According to a poll of central banks from foreign exchange firm BIS, there was a "sharp uptick" of CBDC-related experiments among central banks that serve advanced economies in 2023. Among those central banks, proof of concept projects increased 35% from 2022 to 2023, while CBDC pilots roughly tripled during the same period. 

“The survey suggests that central banks are proceeding at their own speed, taking diverse approaches and considering different design features,” the BIS researchers wrote in a June 2024 paper. 

Only 83 institutions participated in the survey, representing just a little more than a third of all 222 central banks. According to BIS, 28 were central banks of advanced economies, while 58 were institutions in developing economies. 

BIS data show that 54% of central banks surveyed are experimenting with proofs of concept or the technology that undergirds CBDC issuances. Meanwhile, roughly a third of the surveyed institutions reported they were running CBDC pilots. 

Among the surveyed advanced economy central banks, 81% were wholesale CBDC-related proof of concept experiments, and 33% were conducting pilots, up from 60% and 10% the year prior, respectively. By comparison, far fewer emerging economy-based (EMDE) central banks were working on wholesale CBDCs. Roughly a third of EMDE central banks worked on proof of concept experiments, while only 19% worked on pilots — experimentation rates that remained virtually unchanged from the year prior. 

Although the rate at which central banks are exploring CBDCs is accelerating in advanced economics, stablecoin adoption remains quite limited, BIS data show. In May 2024, the market capitalization of cryptocurrencies was $2.7 trillion. Stablecoins, which include central bank digital currencies, make up just 6% of the crypto market cap at $161 billion, according to CIS data.