Digital currencies are taking the place of banknotes. Banks Prepare for Change – Event of the Day

The Bank for International Settlements survey was conducted at the end of last year at 86 central banks around the world. In this context, central banks have started reading and working on digital versions of their own currencies for use in retail purposes. Currently, digital payments are not allowed in the private sector. Some central banks are also exploring wholesale digital versions of their currencies for use in transactions between financial institutions.

As a result of this research, some 24 central banks in advanced and emerging economies plan to put digital currencies into circulation by 2030, according to a Reuters report.

The BIS survey revealed that most of the new digital currencies issued by central banks will appear in the retail sector. So, in no time, 11 central banks could join the Bahamas, the Eastern Caribbean, Jamaica and Nigeria, which have already introduced digital currencies to the retail market.

Overall, the survey also shows that nine central banks are interested in introducing digital currencies.

“The expansion of cross-border payments is one of the key drivers of central bank initiatives related to digital currencies overall,” the authors of the analysis argue.

And many banks are preparing to switch to digital currency

Support from BRI representatives. In the document, the share of central banks in the procedures for putting digital currencies into circulation has increased to 93%. 60% of companies analyzed said they have stepped up their efforts in digital stablecoins and other crypto assets.

About 40% of respondents to the BIS survey said that their central bank or other institutions within their jurisdiction had recently conducted a study on the use of stablecoins or other crypto-assets among consumers and businesses.

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“Crypto-assets, including stablecoins, could pose a threat to financial stability if widely used for payments,” the BIS report said.

The Bank for International Settlements is the oldest international financial institution established in 1930. BIS is the counterparty to financial transactions carried out by central banks and also plays the role of a platform that facilitates exchange of ideas between financial institutions. . BRI also acts as an agent or trustee for international financial transactions.

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