Central Banks Are Increasingly Dabbling in Digital Currencies

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An increasing number of central banks are looking into issuing digital currencies, according to the Bank for International Settlements.

A survey of 66 central banks by the Basel-based institution showed that some 80% were engaged in the matter, up from 70% the year before. The proportion likely to issue a digital currency to the public in the 1-3 years doubled to 10%.

“A significant minority, representing a fifth of the world’s population, look likely to issue a central bank digital currency very soon,” the BIS said in a report published on Wednesday. Still, about 70% don’t anticipate doing so imminently.

The advent of digital assets has elicited a range of reactions from central bankers, from outright condemnation to cautious support.

As a European Central Bank official, Benoit Coeure labeled “the evil spawn of the financial crisis.” Yet in a sign of how officials believe it’s important to stay on top of developments, he’s now running the BIS’s innovation hub, which aims to develop insights into the way financial technology impacts central banks.

Central banks cited financial stability and the robustness of payment systems as key reasons for issuing a digital currency, either for wholesale use or for the public.

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