A recent survey conducted by the Bank for International Settlements (BIS) has revealed that central banks worldwide are unlikely to issue retail central bank digital currencies (CBDCs) in the medium term. The survey, which polled central banks globally, found that only 12% of respondents plan to issue retail CBDCs in the next few years.

On the other hand, the likelihood of central banks issuing wholesale CBDCs is higher, with several respondents expressing interest in exploring this option. Wholesale CBDCs are primarily aimed at enhancing cross-border payments, addressing challenges such as high costs, low speed, limited access, and insufficient transparency.

The survey highlights that central banks are interested in wholesale CBDCs for their potential to enable financial institutions to access new functionalities enabled by tokenization, such as composability and programmability. In contrast, retail CBDCs are still being explored by over half of the surveyed central banks, with financial regulators seeking clarification on matters related to holding limits, interoperability, offline options, and zero remuneration.

The BIS survey suggests that central banks are exercising caution in issuing retail CBDCs, citing concerns related to their potential impact on the financial system. However, the exploration of wholesale CBDCs indicates a willingness to leverage digital currencies for specific use cases, such as cross-border payments.

As the digital currency landscape continues to evolve, it is likely that central banks will maintain a cautious approach, prioritizing wholesale CBDCs over retail ones. The survey's findings underscore the need for continued research and exploration in the field of digital currencies, as central banks strive to balance innovation with financial stability.