The Bank for International Settlements (BIS) reported that its recent survey of central banks showed a significant increase in exploration of central bank digital currencies (CBDCs) globally, with 94% of central banks now actively involved in these investigations. The survey, outlined in the report "Embracing Diversity, Advancing Together," highlighted a cautious approach by central banks, each taking unique paths in CBDC development and implementation.

Motivations driving central banks include preserving the role of central bank money amidst the growth of privately issued digital currencies, improving domestic payment efficiency, promoting financial inclusion, and enhancing cross-border payment systems. The survey underscored a notable trend towards wholesale CBDC applications, particularly in advanced economies, with an increasing likelihood of issuing wholesale CBDCs within the next six years surpassing that of retail CBDCs.

Key considerations for wholesale CBDCs include interoperability and programmability, while retail CBDC plans focus on features like holding limits, interoperability with existing payment systems, offline transaction capabilities, and remuneration policies.

Differences in design preferences were observed between advanced economies and emerging markets, with the latter showing more interest in distributed ledger technology (DLT) and transaction limits for CBDC implementations.

The BIS stressed the importance of international collaboration to ensure a secure and efficient global payment system, recognizing that jurisdictions are advancing at varying speeds and adopting diverse approaches.

Regarding stablecoins, the survey found limited use outside the crypto ecosystem, primarily for crypto trading and within decentralized finance (DeFi) platforms. Stablecoins account for a small fraction of the overall crypto market despite their growing market capitalization, and their adoption for mainstream payment purposes remains minimal. Central banks noted stablecoins' niche use in remittances and retail payments, such as constituting approximately 5% of remittances to Mexico.

Despite their limited current use, concerns persist among central banks about stablecoins potentially disrupting financial stability and payment systems, prompting regulatory efforts aimed at protecting investors, ensuring financial stability, and combating illicit activities.