CRYPTO - CBDC: central banks show declining interest in digital currencies

A recent survey by the Official Monetary and Financial Institutions Forum (OMFIF) reveals that central banks are losing interest in CBDCs despite ongoing research efforts.

The annual Future of Payments report highlights a sharp decline in support for CBDCs as a solution for cross-border payments: only 13% of respondents in 2024 see them as a viable option, compared to 31% in 2023.

Preference is shifting towards interconnected instant payment systems, such as the U.S. FedNow service, which is backed by 47% of central bankers. Stablecoins, meanwhile, received no votes for the second consecutive year.

This cooling interest coincides with the withdrawal of the Bank for International Settlements (BIS) from the mBridge Project, a multi-CBDC initiative led by China. Although the BIS denies political motives, the move underscores the geopolitical tensions surrounding digital currency adoption.

The survey also reaffirms the dominance of the U.S. dollar, with only 11% of central banks reporting a reduction in its use.

Currently, over 130 countries are exploring CBDCs. Early adopters include China, the Bahamas, Jamaica, and Nigeria, while others, such as the United States, are moving more cautiously. President-elect Donald Trump has repeatedly voiced opposition to the potential issuance of a digital dollar.

https://atlas21.com/cbdc-central-banks-show-declining-interest-in-digital-currencies/