BIS: Two-thirds of surveyed central banks study stablecoins

Many central banks are studying digital currencies, but regulators’ greatest interest is pinned to stablecoins. This follows from the results of a survey conducted by the Bank for International Settlements (BIS).

“Most central banks are currently studying various uses of CBDCs. Overall, the survey indicates a shift from conceptual research to experiments and pilots,” the document says.

Of 60 surveyed central banks, about 60% are still in the early stages of research. About two-thirds of financial institutions are focused on stablecoins, studying their ‘impact on monetary and financial stability’.

The report mentions only one stablecoin — Tether, and among cryptocurrencies — Bitcoin.

“Central banks continue to regard cryptocurrencies as niche products that are not widely used as a means of payment,” the researchers noted. “In 2020, the value of many cryptocurrencies rose sharply, confirming the thesis about the speculative nature of these assets. This growth was not accompanied by any changes in the perception of cryptocurrencies as a means of payment.”

The BIS head, Agustín Carstens, said that the issuance of digital currencies should be the prerogative of central banks.

“If digital currencies are needed, they should be issued by central banks. If they do this, CBDCs could play a significant role in innovation, spurring competition and improving payment efficiency,” stressed the head of the international financial organisation.

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Earlier, the BIS Innovation Hub head Benoît Coeuré expressed the view that CBDC will not displace cash.
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