A recent survey from the Bank of International Settlements (BIS) reveals that central banks see little immediate wholesale use for cryptocurrencies within the next three years, the South China Morning Post reported on Tuesday. While the survey found that most of those central banks are currently researching possible uses for digital currency, a majority have no short-term plans to issue their own.
As the Post reported:
Wholesale digital currencies, which would be restricted in usage for specific tasks, such as interbank payments, are seen as the most likely usage for such currencies initially by central banks.
The survey of 63 of the world’s central banks found that more than half reported little or no use of cryptocurrencies in their countries. More than a quarter of those central banks said that digital currency use was confined to niche groups. The report’s authors, Christian Barontini and Henry Holden, noted:
“No central banks reported any significant or wider public use of cryptocurrencies for either domestic or cross-border payments in their jurisdictions.”
However, central banks continue to be interested in the technology, as roughly 70 percent of the surveyed central banks reported ongoing efforts to incorporate blockchain technology into their own wholesale payment systems. So far, five of those banks have succeeded in progressing to the pilot project stage. The report’s authors explained why there’s been little incentive to press forward on the issue:
“Motivations for issuing a CBDC are largely idiosyncratic: for example, falling availability of cash in a jurisdiction. This has meant that only a limited number of central banks are proceeding to the pilot stage with CBDCs, and even fewer see issuance of a CBDC as likely in the short or medium term.”