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Almost every federal bank in the world is obsessed with cryptocurrency

The "growth of stable coins and other cryptos" has sped up CBDC development. This is especially true in "emerging economies," say experts at PPE.

10-May-2022 By: Rohit Tripathi
Almost every federal

Almost every federal bank in the world is obsessed with cryptocurrency

A survey says every 9 banks out of 10 is getting used to cryptocurrency

As per the Bank of International Settlements' most new research, nine out of ten central banks worldwide are investigating central bank digital currencies (CBDCs) (BIS). Last Monday, the Bank of International Settlements (BIS) released a paper headlined "Garnering impetus — Results of such 2021 BIS research on cbdc currency." Anneke Kosse, the bank's chief economist, and Ilaria Mattei, a financial market analyst, wrote the research.

The BIS CBDC survey was performed in autumn 2021, with 81 central banks participating. The report explains:

90 per cent of central banks are investigating CBDCs currencies, with more than half producing or testing these. Development on commercial CBDCs, in particular, has evolved toward a more elevated level.

The researchers claimed that the Covid-19 epidemic, as well as the "development of stable coins and other cryptos," had expedited the development of CBDCs. This is particularly true in "emerging economies, wherein central banks argue financial stability has risen in significance as a justification for their CBDC engagement," researchers noted.

The research claims that "the year 2021 was distinguished by the substantial rise of the crypto assets and stablecoin sector," and also that "in general, nearly six out of ten responding central banks acknowledged that this development has expedited their efforts on CBDCs." The writers proceeded, saying:

It has also prompted the federal reserve to work together to examine the ramifications of crypto assets and stablecoins and to integrate strategies for continuous mitigating their dangers to the financial sector.

Furthermore, several central banks disclosed that they are focusing on wholesale CBDCs to increase cross-border payment efficiency, with more than 2 different indicating that a consumer CBDC will be issued "in the immediate or intermediate-term."