The Bank for International Settlements (BIS) has released findings from its 2023 survey on central bank digital currencies (CBDCs), highlighting a prevailing reluctance among central banks worldwide to launch retail CBDCs in the near future. According to the survey, only 12% of central banks are currently planning to issue retail CBDCs in the medium term.

The survey underscores a shift in focus towards wholesale CBDCs, with the likelihood of their issuance within the next six years surpassing that of retail CBDCs. BIS predicts that up to nine wholesale CBDCs could be in circulation by the end of the decade, driven primarily by central banks' interest in enhancing cross-border payments efficiency.

Central banks view wholesale CBDCs as a potential solution to existing challenges in cross-border transactions, including high costs, slow processing times, limited accessibility, and transparency issues. The survey highlights that these institutions perceive wholesale CBDCs as a means to enable financial institutions to leverage tokenization's benefits, such as enhanced composability and programmability.

While over half of the surveyed central banks are exploring retail CBDCs, the focus remains on addressing regulatory and operational complexities. Key concerns include establishing clear guidelines on holding limits, ensuring interoperability across different platforms, providing offline transaction capabilities, and determining the remuneration framework for retail CBDCs.

The BIS survey reflects a cautious approach among central banks towards retail CBDCs, contrasting with a more proactive stance on wholesale CBDCs aimed at transforming cross-border payments infrastructure. As global financial authorities continue to navigate the complexities of digital currencies, the evolution of CBDC policies will likely shape future developments in international finance and monetary systems.