Nearly one third of the central bank has pushed back to launch a digital version of their currency, a new survey shows, although the desire to protect the power of printing their money means that most of them still intend to continue.
The Central Bank Digital Currencies (CBDCS) is returned to the spotlight after US President Donald Trump prohibits work with digital dollars in one of his first movements after regaining strength last month.
The survey round published on Tuesday was completed before the announcement, but the central banks that took part had been asked whether they were now cooling at CBDC, given the problems around the asset.
Found 67% did not change their attitude over the past year, with three quarters planning to publish one and stable 19% by saying they did not intend to do it.
However, other findings are more diverse. The share of the central bank tends to issue a little down, while the proportion is now less likely to issue one is 15%, compared to zero in 2022.
“There is a clear doubt around the subject,” a survey by Think Monetary Tank and Official Financial Institution (OMFIF) and German -based banknotes in Germany Giesecke+Devrient said.
“Very few (central bank) so far have made a decision to be issued, despite a lot of exploration work.”
The company said 31% had postponed their CBDC schedule, including nearly half of those who hoped to have one ready in three to five years.
Supporters of digital currencies say they can make payments 24/7, real-time, cross-currency traffic becomes a reality and is a natural alternative for physical cash, which seems to be in the terminal reduction.
The opponent, however, argues that progress can be achieved with the existing system. Public protests have focused on one of the main criticisms of President Trump US – rejected by central bankers – that the government can use it to peek.
The survey shows that “preserving the monetary sovereignty of the central bank” remains the main motivation to introduce CBDC, especially in large countries such as the Euro zone.
Giesecke+CEO of Devrient Wolfram Currency Technology in Seidemann noted that one of the main policy makers of the new European central bank said that Euro Digital will compensate for Trump Drive for ‘Stablecoin’ – a type of cryptocurrency that is usually trimmed to the dollar.
Stablecoin is carried out to benefit from private -owned groups. If they become too dominant, their concern is that it will eliminate money, or “Seigniorage”, countries get from printing their own currencies and the strengths they have through them.
“I am sure other people will have the same view,” said Seidemann referring to ECB’s attitude.
“Another elephant”, he said, is a sustainable concern about privacy and interrelated risks that almost no one finally uses CBDC launched, considering they also have not offered significant progress in terms of what people can do with people can be done with their people.
Jamaica, Bahamas, Nigeria, and China all have this problem and that is the biggest concern for around 55% of the developing market central bank asked by the survey.
Source: Reuters
