{"id":105642,"date":"2021-01-27T21:53:22","date_gmt":"2021-01-27T21:53:22","guid":{"rendered":"https:\/\/fin2me.com\/?p=105642"},"modified":"2021-01-27T21:53:22","modified_gmt":"2021-01-27T21:53:22","slug":"central-bank-digital-cash-could-come-to-20-of-the-world-in-three-years-bis","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/central-bank-digital-cash-could-come-to-20-of-the-world-in-three-years-bis\/","title":{"rendered":"Central bank digital cash could come to 20% of the world in three years – BIS"},"content":{"rendered":"
LONDON (Reuters) – Central banks representing one-fifth of the world\u2019s population are likely to issue their own digital currencies in the next three years, a survey by central bank umbrella group the Bank for International Settlements shows.<\/p> The push comes as physical cash use falls globally and authorities look to fend off the threat to their money-printing powers from bitcoin and efforts linked to Big Tech such as the Facebook-backed Diem, formerly Libra.<\/p>\n At the same time, central banks who have taken interest rates negative are looking at whether digital cash could be used to help implement the radical policy.<\/p>\n Wednesday\u2019s BIS survey of 65 central banks showed 86% were exploring the benefits and drawbacks of digital currencies, with some testing possible designs.<\/p>\n Emerging and developing economy central banks are more likely than those in major economies to issue central bank digital currencies (CBDCs), the survey showed.<\/p>\n The Bahamas became the first country to launch a general purpose CBDC, known as the Sand Dollar, in October.<\/p>\n A number of bigger countries have also been testing the waters, with China the most advanced.<\/p>\n A fifth of central banks from major economies that responded to the survey said issuing digital currencies was \u201cpossible\u201d in the short or medium term, up from only one last year.<\/p>\n (Graphic: Increasing numbers of central banks looking at issuing digital currencies: )<\/p>\n The People\u2019s Bank of China expanded a trial of a digital renminbi to its three largest urban regions, which together contain 400 million people, in August..<\/p>\n ECB President Christine Lagarde said last week her bank was pushing on with its work on a digital euro, Sweden\u2019s E-Krona is progressing and U.S. Federal Reserve chief Jerome Powell has said it is carrying out experiments for a digital dollar.<\/p>\n But there are still hurdles to overcome.<\/p>\n The BIS survey showed over a quarter of central banks do not currently have the authority to issue a CBDC and about 48% remain unsure. Around 60% see themselves as unlikely to issue any type of digital currency in the short or medium-term.<\/p>\n As a whole, though, \u201ccentral banks are moving into more advanced stages of CBDC engagement, progressing from conceptual research to practical experimentation,\u201d the survey said.<\/p>\n (Graphic: Central bank digital currencies across the world Central bank digital currencies across the world: )<\/p>\n (Graphic: Reasons why central banks are looking at digital currencies: )<\/p>\n