Central banks around the world are stepping up efforts to develop their own digital currencies, a survey by the Bank for International Settlements (BIS) revealed this week.
At least 24 central banks are expected to put their virtual currencies, known as CBDCs, into circulation by 2030, according to the BIS, which questioned 86 institutions between October and December last year. Some 93% of central banks are working on a digital currency, with the biggest gains being made in CBDCs for retail payments, the survey found.
In the case of Latin America, Sebastian Camiser, an Argentine-based digital business consultant, said the currencies can offer advantages, “such as reducing costs to issue and circulate money, improve financial inclusion […] and facilitate faster and cheaper international payments.”
Camiser said that given the expanding digital economy, central banks need to review their role as regulators of financial stability. “By developing their digital currencies, central banks can maintain control over monetary policy and the stability of the financial system,” he told iupana.
Brazil is among the country making the fastest progress, with plans to launch its digital real next year, while India is also among the frontrunners. The European Central Bank may launch a digital euro in 2028.
However, there are still challenges to overcome before these virtual assets enter the economy. According to Camiser, key issues that have yet to be addressed include privacy and security, vulnerability to cyber attacks, and regulation.