The number of central banks working on their own digital currencies continues to grow. As reported by the Bank for International Settlements (BIS) in Basel, 93 percent of the central banks it surveyed were engaged in such work last year.
In 2017, the proportion was just around 65 percent. The BIS, which is often referred to as the bank of central banks, surveyed 86 central banks worldwide for its study on digital currencies.
If this development continues, according to the BIS, there could be 24 state digital currencies by the end of the decade – 15 of them directly accessible to citizens (“retail”), 9 as a clearing unit between commercial banks (“wholesale”). Four countries currently have their own digital currencies that citizens have access to: the Bahamas, the Organization of Eastern Caribbean States (including Grenada and Montserrat), Jamaica and Nigeria.
In 2022, no state digital currency will be added. However, more than half of the central banks surveyed had experimented with digital currencies or were working on a pilot project. The proportion of central banks planning to introduce their own digital currency within the next three years has increased.
Digital euro not before 2026
A number of major central banks have also recently published results of preparatory work, including the central bank of Sweden, the regional central bank of New York and the monetary authorities of Australia, Malaysia, Singapore and South Africa. Some central banks, including the European Central Bank (ECB), have started deliberations on the introduction of their own digital currencies or have published corresponding interim reports.
According to the current status, the ECB wants to decide on further steps towards a digital euro in autumn. An introduction is currently not expected before 2026.
