IBM and the Official Monetary and Financial Institutions Forum (OMFIF) have issued a report that gives a glimpse into the mindset of 21 central banks when it comes to cryptocurrencies.
The report paints a mixed picture. Most of those 21 central banks said central banks should be issuing digital currency. The question is, what type?
The report found 38 percent of those surveyed said they are actively researching and conducting trials of wholesale central bank digital currencies (CBDCs) as a replacement for government-issued fiat currencies. Wholesale CBDCs is money limited to commercial banks and clearing houses that make up the interbank market.
None of the surveyed central banks plan on launching a retail CBDC anytime soon. A retail CBDC is a digital version of central bank fiat currency that is universally available, which entails public access to central bank liabilities, according to the report.
The report also found 76 percent were uncertain about the effectiveness of digital ledger technology, and many aren’t sure it’s even needed because “central banks – as ledger keepers – are considered sufficiently trustworthy already,” the report said. Read more here.