- 72% of central banks plan to issue CBDCs, with 48% targeting launch within five years.
- Emerging markets lead near-term CBDC implementation, driven by financial inclusion goals.
- One-third of central banks report timeline delays, with retail CBDC projects facing more setbacks than wholesale initiatives.
- Offline capability, privacy features, and cost reduction are top priorities for 80% of central banks.
- Developed economies prioritize monetary sovereignty, while emerging markets focus on expanding financial access.
Central banks worldwide are accelerating their digital currency initiatives, with nearly three-quarters planning to launch Central Bank Digital Currencies (CBDCs), according to a new survey by think tank OMFIF. The research reveals 12% of institutions aim to implement CBDCs within two years, while 48% target deployment within five years.
The survey highlights a significant divide between emerging and developed markets in CBDC implementation strategies. Emerging economies are taking the lead in near-term launches, prioritizing financial inclusion objectives, while developed nations focus on maintaining monetary sovereignty.
Implementation challenges vary between retail and wholesale CBDC projects. Retail CBDCs, designed for public use, face more significant hurdles, with 36% reporting delays. In contrast, wholesale CBDCs, limited to financial institutions, show greater progress, with only 21% experiencing timeline setbacks.
These findings contrast with last year’s Bank for International Settlements (BIS) survey, which indicated declining interest in retail CBDCs. The OMFIF research notes that 15% of central banks have abandoned their CBDC plans entirely, though without specifying whether these were retail or wholesale projects.
Technical priorities have emerged clearly, with approximately 80% of central banks focusing on three critical features: offline functionality, privacy protections, and cost reduction. Usability remains the primary challenge for implementation, suggesting that central banks are grappling with making CBDCs accessible and user-friendly for their intended audiences.
The distinction between retail and wholesale CBDCs is crucial for understanding development timelines. Wholesale CBDCs represent a less dramatic technological shift, as they build upon existing central bank reserve systems. Retail CBDCs, however, require more extensive infrastructure development and consumer protection measures, explaining their longer implementation timelines.
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