A Global survey recently has shown that opinions are divided on the topic of central bank digital currencies (CBDCs).
While some see CBDCs as the future of money and a way to bring financial inclusion to the unbanked, others are skeptical about their potential impact on the economy and the role of central banks. With the rise of cryptocurrency the debate around CBDCs is more relevant than ever.
This note evaluates current changes in central bank digital currencies (CBDCs) and crypto assets in Asia based on survey answers from 34 Asian economies and country case studies.
“We have observed a strong level of agreement overall (58% somewhat or strongly agree),
fairly consistent across regions and markets, on the notion that private money would con-
tinue to be inferior to government money. The strongest levels of response in this regard
were found in Japan (74%) and India (69%).”The survey stated.
Although the survey reveals significant growth stage variation, the rise of private crypto assets has given CBDCs more attention. Few countries are anticipated to issue CBDCs in the near-to-medium term, indicating the still significant uncertainties, despite the fact that most nations are engaged in research and development and some are at advanced phases of testing and pilots.
Even yet, the experiences people have had in the country so far offer some crucial information for anybody traveling in this area.
The survey, conducted by the Bank for International Settlements (BIS), polled central banks from around the world and found that while 86% of respondents are currently researching CBDCs, only 60% have moved to the experimental phase.
This suggests that while there is interest in CBDCs, central banks are still grappling with the challenges of implementing them.
“We want to test our thoughts once again today. We are currently in the experimental phase after moving past discussions of CBDCs from a conceptual standpoint. The bits and bytes of digital currency are becoming more and more familiar to central banks, who are getting dirty in the process.”
As the world moves towards a more decentralized financial system, CBDCs may become an increasingly important part of the conversation around cryptocurrency and Web3 technology.
Risks of Cyber hacking: CBDC Global Survey:
The risk of cyberhacking was the main worry voiced by respondents from throughout the globe regarding CBDCs; 69% of participants were concerned about possible security breaches.
For 64% of respondents in developed markets and 57% in developing economies, data privacy was also a top issue.