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With growing inclination in technology, several central banks are planning to release their own virtual currencies, according to findings of Bank for International Settlement.
Research showed an additional 10% increase as 20% of the 66 central banks interviewed are planning to have their own digital coins within the next six years. In line, one in ten banks disclosed their interest of launching virtual coins within the next three years.
Overall, 80% of central banks said they are in close assessment of the technology, up from 70% last year.
Ongoing discourses on who will take command on future currencies surfaced after Facebook launched its own cryptocurrency, Libra. Following such, major countries weighed the possibility of central bank digital currencies.
Central banks were hesitant about cryptocurrencies due to market limitation and accessibility but after Facebook disclosed its crypto scheme, many have considered the option.
Japan, Britain, and countries in Europe disclosed their intentions of issuing CBDCs, which decisions could all be attributed from the competition posed by Libra, an executive of Bank of Japan said.
However, BIS disclosed that only 10% have started on CBDC development with pilot projects already on track.
“There is no evidence of a widespread or general move to expand this research into experimentation and pilot arrangements,” it said.
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