BIS: NO EVIDENCE OF MASS TRANSITION FROM CBDC RESEARCH TO PILOTS AND EXPERIMENTS

Are central bank digital currencies (CBDCs) on the cusp of revolutionizing the financial landscape?The hype surrounding CBDCs has been considerable, with many predicting a swift and widespread adoption. Over the course of 2025, there has been a sharp uptick in experiments and pilots with wholesale CBDCs mainly in advanced economies (AEs), but various emerging market and developing economies (EMDE) also stepped up their wholesale CBDC work.However, a recent survey by the Bank of International Settlements (BIS) paints a more nuanced picture, revealing that the transition from the *research phase* to actual **pilots and experiments** isn't happening as rapidly as some might expect. The authors of the report found no evidence of a widespread transition from the research phase of CBDCs to pilots and experimentations. The report further reads:In fact, the survey found that only a small fraction of central banks, a mere 10%, are likely to issue a CBDC for the general public in the short term.This raises important questions about the future of digital currencies and the role central banks will play in their development.

This article will delve into the key findings of the BIS report, exploring the motivations behind CBDC development, the challenges hindering their widespread adoption, and the potential impact on the global financial system. A new survey from the Bank of International Settlements (BIS) revealed that only 10% of central banks are likely to issue a central bank digital currency (CBDC) for the general public in the short term. According to a report the BIS shared with Cointelegraph on Jan. 23, the bank surveyed 66 central banks from around [ ]We'll examine the differences between retail and wholesale CBDCs, analyze the progress being made in cross-border payments, and ultimately, try to understand why the predicted mass transition from research to real-world implementation hasn't materialized...yet. Central bank digital currencies (CBDCs) are receiving more attention than ever before. Yet the motivations for issuance vary across countries, as do the policy approaches and technical designs. We investigate the economic and institutional drivers of CBDC development and take stock of design efforts. We set out a comprehensive database of technical approaches and policy stances on issuancePrepare to unpack the complex world of CBDCs and discover what the future holds for digital money.

The Current State of CBDC Development: Research vs.Implementation

The BIS report clearly indicates that while many central banks are actively researching CBDCs, there's a significant gap between theoretical exploration and practical application.The authors specifically noted that they found no evidence of a *widespread transition* from the research phase to pilots and experimentation.This begs the question: what's holding central banks back from taking the plunge?

Several factors contribute to this cautious approach. The Bank of International Settlements s new survey revealed that only 10% of central banks are likely to issue a CBDC for the general public in the short term Please note, this is a STATIC archive of website cointelegraph.com from October 2025, cach3.com does not collect or store any user information, there is no phishing involved.First, the technological infrastructure required to support a CBDC is complex and costly to develop. A nova pesquisa do Bank of International Settlements - BIS - revelou que apenas 10% dos bancos centrais provavelmente v o emitir uma CBDC para o p blico em geral no curto prazo. Uma nova pesquisa doSecond, there are significant regulatory and legal hurdles to overcome, particularly concerning data privacy, security, and anti-money laundering (AML) compliance.Finally, central banks need to carefully consider the potential impact of CBDCs on the existing financial system, including the role of commercial banks and the overall stability of the economy.

Survey Says: Central Bank Intentions and Timelines

The BIS survey provides valuable insights into the intentions and timelines of central banks regarding CBDC issuance. In simple terms, a central bank digital currency would be a digital banknote. It could be used by individuals to pay businesses, shops or each other (a retail digital currency), or between financial institutions to settle trades in financial markets (a wholesale digital currency).As mentioned earlier, only 10% of central banks anticipate issuing a CBDC for the general public in the short term.However, this doesn't mean that CBDCs are dead in the water. The Bank of International Settlements s new survey revealed that only 10% of central banks are likely to issue a CBDC for the general public in the short term. 0.The survey also revealed that approximately two-thirds of central banks are currently conducting experiments or pilots related to CBDCs.This indicates a continued interest in exploring the potential benefits of digital currencies, even if widespread adoption is still some years away.

Furthermore, the survey highlighted a distinction between *advanced economies (AEs)* and *emerging market and developing economies (EMDEs)*. Taken together, these risks and challenges suggest that while CBDC adoption may progress in 2025 and the following years, the pace will be shaped as much by the resolution of these concerns as by technological readiness. Future Outlook: CBDC Integration, Cross-Border Payments, and the Road to 2025While both groups are engaged in CBDC research and experimentation, their motivations and priorities differ. Bitcoin vs. Marx: Two Competing Geopolitical Domino Theories Marxism and Bitcoin have one thing in common, the idea that a radical change in the structure of society will happen iEMDEs, for example, are often driven by a desire to reduce reliance on cash and improve financial inclusion, whereas AEs may be more focused on preempting potential issues related to the rise of private cryptocurrencies.

Retail vs. CBDC only or are involved in both retail and wholesale CBDC work (Graph 2.B). Importantly, central banks CBDC work has made further progress.16 More than half of central banks are conducting concrete experiments or working on a CBDC pilot (Graph 2.C). Multiple central banks completed retail or wholesale CBDC experiments in 2025.Wholesale CBDCs: Understanding the Differences

CBDCs can be broadly classified into two categories: retail and wholesale. We would like to show you a description here but the site won t allow us.Understanding the differences between these two types is crucial to grasping the potential impact of CBDCs on different parts of the financial system.

• Retail CBDCs: These are designed for use by the general public, allowing individuals to make payments to businesses, other individuals, and the government.They are essentially a digital form of cash, backed by the central bank.
• Wholesale CBDCs: These are intended for use by financial institutions, enabling them to settle transactions more efficiently and securely.They can streamline interbank payments, securities settlement, and other wholesale financial activities.

The BIS Innovation Hub has been actively involved in projects exploring both retail and wholesale CBDCs, conducting experiments in both domestic and cross-border contexts. El 20% de los bancos que participaron en la encuesta dijeron que probablemente emitir n una CBDC a mediano plazo, de los cuales el 90% est n categorizadas como EME. Los autores del informe no encontraron evidencia de una transici n generalizada de la fase de investigaci n de CBDC a pilotos y experimentos. El informe adem s dice:These projects aim to demonstrate the feasibility and potential benefits of CBDCs in various use cases.

For example, some experiments have focused on achieving interoperability between a CBDC network and a non-CBDC payments network, while others have explored the possibility of connecting two CBDC networks using different technologies. A new survey from the Bank of International Settlements (BIS) revealed that only 10% of central banks are likely to issue a central bank digital currency (CBDC) for the general public in the shortThese experiments are crucial for identifying the technical challenges and potential solutions associated with CBDC implementation.

Motivations for CBDC Development: A Global Perspective

The motivations behind CBDC development vary significantly across countries, reflecting their unique economic and institutional circumstances.As noted earlier, EMDEs are often driven by a desire to reduce reliance on cash. The BIS Innovation Hub (BISIH) is leading practical experiments to show how central bank digital currencies (CBDCs) could help deliver faster, cheaper and more transparent cross-border payments. These experiments demonstrate that common systems encompassing multiple CBDCs are operationally feasible and could bring efficiencies.In many developing countries, cash is still the dominant form of payment, but it comes with several drawbacks, including high transaction costs, security risks, and limited traceability. Economic Research, Inc. 7 See Auer (R.), Boar (C.), Cornelli (G.), Frost (J.), Holden (H.) and Wehrli (A.) (2025), CBDCs beyond borders: results from a survey of central banks, BIS Papers No 116, Bank for International Settlements, June. The survey shows that about two thirds of central banks are conducting CBDC experiments or pilots.CBDCs offer a potential solution to these problems, providing a more efficient, secure, and transparent means of payment.

Advanced economies, on the other hand, may be more concerned about the potential displacement of commercial bank deposits by private cryptocurrencies.The rise of stablecoins and other crypto assets has raised concerns among central bankers about the potential for these private currencies to undermine monetary policy and financial stability.CBDCs could provide a safe and reliable alternative to these private currencies, helping to maintain the central bank's control over the monetary system.

Here’s a breakdown of common motivations:

1. Reducing reliance on cash: Especially in EMDEs.
2. Improving financial inclusion: Providing access to financial services for underserved populations.
3. Enhancing payment system efficiency: Streamlining transactions and reducing costs.
4. Promoting financial innovation: Fostering the development of new financial products and services.
5. Maintaining monetary sovereignty: Countering the potential threat of private cryptocurrencies.

Challenges and Risks Associated with CBDCs

While CBDCs offer numerous potential benefits, they also pose significant challenges and risks that need to be carefully considered.These challenges range from technical issues related to infrastructure development to broader concerns about privacy, security, and financial stability.

Data Privacy and Security Concerns

One of the biggest concerns surrounding CBDCs is the potential for governments to track and monitor citizens' financial transactions. BIS: No Evidence of Mass Transition From CBDC Research to Pilots and Experiments Janu Bitcoin, Cryptocurrency, Cryptocurrency News, The Bank of International Settlements s new survey revealed that only 10% of central banks are likely to issue a CBDC for the general publiThe ability to trace every payment made with a CBDC raises serious questions about privacy and civil liberties. BTCUSD Bitcoin BIS: No Evidence of Mass Transition From CBDC Research to Pilots and Experiments The BIS's new survey revealed that only 10% of central banks are likely to issue a CBDC for the general public in the short term Continue reading BIS: No Evidence of Mass Transition FrCentral banks need to develop robust privacy safeguards to ensure that CBDCs do not become a tool for government surveillance.

Furthermore, CBDCs are vulnerable to cyberattacks and fraud.A successful attack on a CBDC system could have devastating consequences, disrupting the payment system and undermining confidence in the currency. BIS: No Evidence of Mass Transition From CBDC Research to Pilots and ExperimentsSource: CointelegraphPublished onCentral banks need to invest heavily in cybersecurity to protect CBDCs from these threats.

Impact on Commercial Banks and the Financial System

The introduction of CBDCs could have a significant impact on commercial banks.If individuals and businesses start holding large amounts of CBDCs, it could lead to a decline in commercial bank deposits, reducing banks' ability to lend and potentially destabilizing the financial system. The BIS s new survey revealed that only 10% of central banks are likely to issue a CBDC for the general public in the short term Cookie Policy 44 (0) 203 8794 460 Free Membership LoginCentral banks need to carefully manage the introduction of CBDCs to minimize the risk of disruption to the banking sector.

Another concern is the potential for CBDCs to be used for illicit activities, such as money laundering and terrorist financing. The Bank of International Settlements s new survey revealed that only 10% of central banks are likely to issue a CBDC for the general public in the short term. sourceCentral banks need to implement strong AML/CFT (combating the financing of terrorism) measures to prevent CBDCs from being used for these purposes.

Technical and Operational Challenges

Developing and implementing a CBDC is a complex and technically challenging undertaking.Central banks need to develop a robust and scalable infrastructure to support the issuance, distribution, and management of CBDCs.This infrastructure needs to be able to handle a large volume of transactions efficiently and securely.

Furthermore, central banks need to address the issue of interoperability. BIS: No Evidence of Mass Transition From CBDC Research to Pilots and Experiments Grand Master Adoption Banks BIS Blockchain CBDC Survey JanuIf different countries issue CBDCs using different technologies, it could make cross-border payments more difficult.Central banks need to work together to develop common standards and protocols to ensure that CBDCs can be used seamlessly across borders.

The Role of the BIS Innovation Hub

The BIS Innovation Hub (BISIH) plays a crucial role in exploring the potential of CBDCs and addressing the challenges associated with their implementation.The BISIH conducts practical experiments to demonstrate how CBDCs could help deliver faster, cheaper, and more transparent cross-border payments.These experiments involve collaboration with central banks from around the world, fostering knowledge sharing and promoting the development of best practices.

The BISIH's work has shown that common systems encompassing multiple CBDCs are operationally feasible and could bring significant efficiencies to cross-border payments.These systems could potentially reduce transaction costs, shorten settlement times, and improve transparency, benefiting businesses and consumers alike.

The Innovation Hub has conducted 12 CBDC projects that cover retail and wholesale, both in a domestic and cross-border context.This hands-on approach allows for a better understanding of the practical implications of CBDC implementation and helps to inform policy decisions.

Future Outlook: CBDC Integration and Cross-Border Payments

While the BIS report indicates that a mass transition from CBDC research to pilots and experiments hasn't occurred, the future of CBDCs remains uncertain.However, there are several key trends that are likely to shape the development and adoption of CBDCs in the coming years.

One important trend is the growing focus on cross-border payments.As globalization continues, the need for faster, cheaper, and more efficient cross-border payment systems is becoming increasingly urgent. The authors of the report found no evidence of a widespread transition from the research phase of CBDCs to pilots and experimentations. The report further reads: Cash use is the key to driving many central banks plans, with EME central banks aiming to reduce reliance on cash, and advanced economies acting to pre-empt any issues that mightCBDCs have the potential to address this need, but only if central banks can overcome the challenges of interoperability and regulatory harmonization.

Another key trend is the increasing integration of CBDCs with existing financial systems. our first round of experiments. These demonstrated, for the first time, how interoperability could be achieved between a CBDC network and a non-CBDC payments network, and between two CBDC networks on different technologies. These experiments reused existing messaging and banking structures to achieve interoperability, solving for BIS mCBDC Model 1.Central banks are exploring ways to integrate CBDCs with commercial bank accounts, payment networks, and other financial infrastructure.This integration is crucial for ensuring that CBDCs can be used seamlessly alongside existing forms of money.

Ultimately, the pace of CBDC adoption will depend on a number of factors, including technological readiness, regulatory developments, and public acceptance. Skip to main content Bitcoin Insider. MenuWhile it's unlikely that we'll see a widespread rollout of CBDCs in the immediate future, the research and experimentation being conducted by central banks around the world are laying the groundwork for a potential transformation of the financial system in the long term.

Key Takeaways: What to Expect in the Coming Years

• Continued Research and Experimentation: Central banks will continue to explore the potential of CBDCs through research and experimentation.
• Focus on Cross-Border Payments: Efforts to improve cross-border payment systems will drive further CBDC development.
• Gradual Integration: CBDCs will likely be integrated gradually with existing financial systems.
• Addressing Challenges: Overcoming challenges related to privacy, security, and financial stability will be crucial for CBDC adoption.

Are CBDCs Inevitable?

The question of whether CBDCs are inevitable is a subject of much debate. of account and is a liability of the central bank (BIS (2025)). However, the stage of engagement research, pilot or launch varies according to the country. All 26 central banks participating in this meeting Annex Table A1( ) are active in CBDC research. Several have progressed to the pilot or proof-of-concept stage (egWhile the BIS report suggests that widespread adoption is not imminent, the ongoing research and experimentation indicate a continued interest in exploring the potential of digital currencies.The increasing focus on cross-border payments and the potential for CBDCs to address some of the inefficiencies in the current financial system suggest that they could play a significant role in the future.

However, the success of CBDCs will depend on addressing the challenges and risks associated with their implementation. BIS: No Evidence of Mass Transition From CBDC Research to Pilots and Experiments The Bank of International Settlements s new survey revealed that only 10% of central banks are likely to issue a CBDC for the general public in theCentral banks need to carefully consider the potential impact on privacy, security, and financial stability, and they need to work collaboratively to develop common standards and protocols to ensure interoperability. A nova pesquisa do Bank of International Settlements - BIS - revelou que apenas 10% dos bancos centrais provavelmente v o emitir uma CBDC para o p blico em geral no curto prazo. BIS: Evid ncias mostram que 10% dos bancos centrais do mundo v o emitir em breve sua pr pria moeda digitalOnly then can CBDCs truly realize their potential to transform the financial landscape.

While a mass transition from CBDC research to implementation isn't evident *yet*, the groundwork is being laid. CBDC. Simultaneous research and development of CBDC by central banks could also explore ways to improve cross-border payments, as part of the G20 roadmap (CPMI (2025)), while avoiding spillovers and unintended consequences. The next stage of CBDC research and development will emphasise individual and collectiveThe next few years will be critical in determining whether CBDCs become a widespread reality or remain a niche experiment.

Conclusion: A Measured Approach to Digital Currencies

The BIS report provides a valuable reality check on the hype surrounding CBDCs. The Innovation Hub has conducted 12 CBDC projects that cover retail and wholesale, both in a domestic and cross-border context. For domestic use cases, two projects investigate wholesale CBDC (wCBDC) and five look at retail CBDC (rCBDC). Across borders, four experiments look at wCBDC and one looks at rCBDC.While many central banks are actively researching and experimenting with digital currencies, the transition from research to real-world implementation is progressing at a slower pace than some might have anticipated.The challenges and risks associated with CBDCs are significant, and central banks are taking a measured approach to their development.

The future of CBDCs remains uncertain, but the ongoing research and experimentation suggest that they could play a significant role in the evolution of the financial system.The focus on cross-border payments and the integration of CBDCs with existing financial infrastructure are key trends to watch in the coming years.Ultimately, the success of CBDCs will depend on addressing the challenges and risks associated with their implementation and ensuring that they are designed to benefit all members of society.

Are you ready for the future of finance?Stay informed, stay curious, and continue to follow the developments in the world of CBDCs.What are your thoughts on CBDCs?Share your comments below!