Recently, a research report named as “Impending arrival – a sequel to the survey on central bank digital currency” is published by the Bank for International Settlements (BIS) that substantiates the fact of the rising shifts in virtual currencies supported by central banks.

The BIS report disclosed that 80 per cent of the banks that became part of the survey have announced that they are on their way for the issuance of virtual currencies for future prospects. The report says:

“Central banks representing a fifth of the world’s population say they are likely to issue the first CBDCs in the next few years.”

Moreover, the BIS report compiled in December 2019 and published in January 2020, includes the answers of 66 state-level banks across the globe. Twenty-one banks came from developed countries, while forty-five belongs to “emerging market economies (EMEs).”

As per the research report, about 80 percent of bank participants are planning to start their virtual currency. This reveals an increase of 10 per cent as compared to the previous year. Besides, 40 per cent of the participant banks have already started their study from research, based on concepts, to practical work, while 10 per cent have become successful in development of trial projects. 

On a question regarding the aim of virtual currency, about 15 per cent of the participants said that they aim at “wholesale”, a token-based CBDC, and one of the broad types of CBDC. While 35 per cent agreed on “general purpose”, the second type of CBDC and the remaining replied that they will focus on both types.

It is worth mentioning that, recently, Agustin Carstens, the General Manager at BIS, provoked state banks to adopt central bank digital currency (CBDC). He explained, for the adoption of the digital currency, they have to focus on the centre of payment gateways operating globally. If they did not, they might face failure in future. 

Information about new central banks working on potential CBDCs becomes widespread daily. Recently, Hong Kong and Thailand collaborated on a task of joint virtual currency that made people know about digital currency. Central banks of both countries confirmed their product “Project Inthanon-LionRock” that aims at making settlements out of the border more transparent, secure, and less costly. 

Lastly, the central banks of a few countries such as the UK, Japan, Sweden, Switzerland, and the Eurozone established the fact that they are also moving towards the adoption of digital currency. Reportedly, they are going to discuss potential use cases for their digital currency.