BIS researchers predict that most state-owned stabelcoins will be used in retail. According to a late 2022 survey of 86 central banks, about 11 regulators are willing to follow the lead of central banks in the Bahamas, Jamaica and Nigeria, which already use retail CBDCs. What’s happening is that people are losing interest in cash, and there is a need to give people an alternative to private cryptocurrencies.
About nine central banks are exploring the possibility of issuing bulk digital currencies for interbank transactions. Central Bank believes that tokenization of assets can open up new functions and expand access to financial markets. Optimizing cross-border payments is one of the key factors central banks are examining when working on wholesale CBDCs, the report’s authors say.
BIS finds that the percentage of central banks exploring CBDC opportunities or participating in development has risen to 93%. At the same time, 60% reported that stabelcoins can actually speed up settlements and payments. Nearly 40% said they or financial institutions under their control have explored the potential of stablocoins for settlements between individuals or businesses. But BIS analysts concluded that if crypto-assets, including stabelcoins, are used for payments everywhere, it could be a threat to financial stability.
Earlier, Cecilia Skingsley, head of the BIS Center for Innovation, said the use of state-owned cryptocurrencies internationally could be hindered by a tense foreign policy environment.