AGL 38.50 Increased By ▲ 0.93 (2.48%)
AIRLINK 131.99 Decreased By ▼ -0.51 (-0.38%)
BOP 5.60 Decreased By ▼ -0.04 (-0.71%)
CNERGY 3.84 Increased By ▲ 0.07 (1.86%)
DCL 8.65 Decreased By ▼ -0.22 (-2.48%)
DFML 40.82 Decreased By ▼ -0.18 (-0.44%)
DGKC 88.70 Decreased By ▼ -1.46 (-1.62%)
FCCL 35.16 Increased By ▲ 0.08 (0.23%)
FFBL 66.50 No Change ▼ 0.00 (0%)
FFL 10.47 Increased By ▲ 0.32 (3.15%)
HUBC 109.51 Increased By ▲ 3.11 (2.92%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.82 Decreased By ▼ -0.04 (-0.82%)
KOSM 7.08 Increased By ▲ 0.23 (3.36%)
MLCF 42.50 Increased By ▲ 0.70 (1.67%)
NBP 59.49 Increased By ▲ 0.91 (1.55%)
OGDC 184.20 Increased By ▲ 2.95 (1.63%)
PAEL 25.56 Decreased By ▼ -0.14 (-0.54%)
PIBTL 5.90 Increased By ▲ 0.07 (1.2%)
PPL 147.52 Decreased By ▼ -0.88 (-0.59%)
PRL 23.51 Increased By ▲ 0.29 (1.25%)
PTC 16.45 Increased By ▲ 1.21 (7.94%)
SEARL 69.19 Increased By ▲ 0.40 (0.58%)
TELE 7.25 Increased By ▲ 0.01 (0.14%)
TOMCL 35.77 Decreased By ▼ -0.23 (-0.64%)
TPLP 7.55 Increased By ▲ 0.15 (2.03%)
TREET 14.20 Decreased By ▼ -0.04 (-0.28%)
TRG 50.90 Increased By ▲ 0.05 (0.1%)
UNITY 26.83 Increased By ▲ 0.43 (1.63%)
WTL 1.23 Increased By ▲ 0.02 (1.65%)
BR100 9,813 Increased By 45.5 (0.47%)
BR30 29,780 Increased By 379.7 (1.29%)
KSE100 92,300 Increased By 362.3 (0.39%)
KSE30 28,799 Increased By 55.1 (0.19%)

LONDON: Central banks representing one-fifth of the world’s population are likely to issue their own digital currencies in the next three years, a survey by central bank umbrella group the Bank for International Settlements shows.

The push comes as physical cash use falls globally and authorities look to fend off the threat to their money-printing powers from bitcoin and efforts linked to Big Tech such as the Facebook-backed Diem, formerly Libra.

At the same time, central banks who have taken interest rates negative are looking at whether digital cash could be used to help implement the radical policy.

Wednesday’s BIS survey of 65 central banks showed 86% were exploring the benefits and drawbacks of digital currencies, with some testing possible designs.

Emerging and developing economy central banks are more likely than those in major economies to issue central bank digital currencies (CBDCs), the survey showed.

The Bahamas became the first country to launch a general purpose CBDC, known as the Sand Dollar, in October.

A number of bigger countries have also been testing the waters, with China the most advanced.

A fifth of central banks from major economies that responded to the survey said issuing digital currencies was “possible” in the short or medium term, up from only one last year.

The People’s Bank of China expanded a trial of a digital renminbi to its three largest urban regions, which together contain 400 million people, in August.

ECB President Christine Lagarde said last week her bank was pushing on with its work on a digital euro, Sweden’s E-Krona is progressing and U.S. Federal Reserve chief Jerome Powell has said it is carrying out experiments for a digital dollar.

But there are still hurdles to overcome.

The BIS survey showed over a quarter of central banks do not currently have the authority to issue a CBDC and about 48% remain unsure. Around 60% see themselves as unlikely to issue any type of digital currency in the short or medium-term. As a whole, though, “central banks are moving into more advanced stages of CBDC engagement, progressing from conceptual research to practical experimentation,” the survey said.

Comments

Comments are closed.