BIS: 70% OF CENTRAL BANKS INVOLVED IN CBDC RESEARCH, ONLY SEVERAL HAVE CONCRETE PLANS

The world of finance is undergoing a digital revolution, and central banks are taking notice.A recent report from the Bank for International Settlements (BIS) reveals that a staggering 70% of central banks worldwide are now actively engaged in research related to Central Bank Digital Currencies (CBDCs). central bank on central bank digital currencies 1 Francisco G Dakila, Jr 2. Abstract . There have been heightened activities in the past two years among central banks exploring central bank digital currencies (CBDCs). The 2025 CBDC survey of the Bank for International Settlements noted that CBDC pilot projects were under way amongThis surge in interest highlights the growing recognition of the potential impact of digital currencies on monetary policy, financial stability, and the future of payments. BIS: 70% of Central Banks Involved in CBDC Research, Only Several Have Concrete Plans cointelegraph.com Like Comment Share Copy; LinkedIn; Facebook; Twitter; To view or add aWhile the exploration of CBDCs is widespread, the report also underscores a crucial distinction: only a handful of central banks have moved beyond the research phase and are currently implementing concrete plans or running pilot programs. BIS: 70% of Central Banks Involved in CBDC Research, Only Several Have Concrete PlansThis gap between research and implementation raises important questions about the complexities, challenges, and long-term viability of CBDCs.

This article will delve into the findings of the BIS report, exploring the motivations behind the increasing interest in CBDCs, the types of research being conducted, the hurdles to implementation, and the potential implications for individuals, businesses, and the global financial system. At the policy level, the control of currency made possible through transaction monitoring are features that central banks already realize through various regulations executed by financial institutions, including commercial banks. According to the latest BIS survey on CBDC development, more than 70% of central banks prefer a two-tiered as itWe'll examine the experiences of central banks that have already launched pilot programs, focusing on the lessons learned and the future direction of CBDC development.Prepare to navigate the intricate landscape of digital currencies and discover the forces shaping the next generation of money.

The Rising Tide of CBDC Research: Motivations and Scope

The BIS report paints a clear picture: central banks are taking CBDCs seriously.The jump to 70% involvement in research represents a significant increase compared to previous years, indicating a growing consensus on the need to understand and potentially adopt this emerging technology.But what's driving this widespread interest?

Several factors contribute to the increasing engagement in CBDC research:

• Declining Cash Usage: In many countries, physical cash is becoming less prevalent as digital payment methods gain popularity. 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.Central banks are exploring CBDCs as a way to maintain a public form of money in a digital world.The Uruguay e-Peso pilot program, based on DLT, was launched in November 2025 partially due to declining cash circulation.
• Innovation in Payments: The rise of cryptocurrencies and stablecoins has spurred innovation in the payments landscape.CBDCs are seen as a way for central banks to compete with these private digital currencies and maintain control over the monetary system.
• Financial Inclusion: CBDCs have the potential to improve financial inclusion by providing access to digital payments for underserved populations who may not have traditional bank accounts.
• Improved Efficiency and Security: CBDCs could streamline payment processes, reduce transaction costs, and enhance the security of the financial system.
• Policy Control: Central banks already have regulations for financial institutions, including commercial banks. Two months ago OMFIF and IBM published a report stating 38% of the 21 central banks surveyed were exploring wholesale CBDCs. Only five projects have advanced to the pilot phase, but the BIS emphasizes that most proofs of concept (PoCs) and pilots are still investigative and don t imply concrete plans for implementation. MotivationsTransaction monitoring through CBDCs allows further financial control.

The scope of CBDC research varies among central banks. 662 subscribers in the CoinPath community. Discuss cryptocurrency and share your path with today's coin and token traders or HODLers. DiscussSome are focusing on retail CBDCs, which would be used by individuals and businesses for everyday transactions.Others are exploring wholesale CBDCs, which would be used by financial institutions for interbank payments and settlement.Many central banks are even investigating both retail and wholesale applications simultaneously.

From Research to Reality: The Hurdles to CBDC Implementation

While 70% of central banks are engaged in CBDC research, only a small fraction have progressed to concrete implementation plans or pilot programs.The transition from research to reality is fraught with challenges.

Here are some of the key obstacles that central banks face:

• Technological Complexity: Developing and implementing a secure and reliable CBDC system is a technologically complex undertaking.Central banks must consider factors such as scalability, interoperability, and cybersecurity.
• Privacy Concerns: CBDCs raise concerns about the privacy of financial transactions. No caso do Uruguai, o banco central do pa s j havia conclu do um programa piloto para uma CBDC de prop sito geral. Com o dinheiro em circula o em decl nio, o banco central lan ou um programa piloto e-Peso em novembro de 2025, que foi notavelmente baseado em DLT.Central banks must balance the need for transparency and accountability with the need to protect individual privacy.
• Financial Stability Risks: The introduction of a CBDC could have implications for financial stability, potentially disrupting the banking sector and leading to disintermediation.
• Legal and Regulatory Framework: Existing legal and regulatory frameworks may not be adequate to address the unique challenges posed by CBDCs.Central banks must work with policymakers to develop appropriate regulations.
• Public Acceptance: The success of a CBDC will depend on its acceptance by the public.Central banks must educate the public about the benefits and risks of CBDCs and address any concerns they may have.

Proof-of-Concept vs. A new report from the BIS has found that 70 percent of central banks are conducting research into central bank digital currencies. BIS: 70% of Central Banks Involved in CBDC Research, Only SeveralConcrete Plans

It's important to note that many of the proof-of-concept (PoC) projects currently underway are primarily analytical in nature.While these PoCs demonstrate the technological feasibility of CBDCs, they do not necessarily indicate concrete plans for issuance. A novel type of financial infrastructure could enhance the global financial system, combining tokenised money and assets on a programmable platform.The BIS emphasizes that most PoCs and pilots are still investigative and don't imply concrete plans for implementation.Moving from a PoC to a full-fledged CBDC requires significant investment, regulatory clarity, and public support.

For instance, OMFIF and IBM published a report showing that 38% of the surveyed central banks were exploring wholesale CBDCs, further reinforcing the interest levels in these digital assets.

Case Studies: Central Banks Leading the Way

Despite the challenges, several central banks have made significant progress in developing and testing CBDCs.These early adopters provide valuable insights and lessons for other countries considering CBDC implementation.

Here are a few notable examples:

• Uruguay: The central bank of Uruguay successfully completed a pilot program for a general-purpose CBDC, known as the e-Peso, in November 2025. The Bank for International Settlements (BIS) defines a central bank digital currency (CBDC) as a central bank-issued digital money denominated in the national unit of account, and it represents a liability of the central bank. 3 One can think of a CBDC as a cryptocurrency but one issued by the central bank itself, whichThis pilot was notably based on distributed ledger technology (DLT).
• China: China is actively developing a centralized digital currency.

These examples highlight the diverse approaches being taken by central banks around the world. BIS: 70% dos bancos centrais est o envolvidos na pesquisa de CBDC, mas somente alguns t m planos concretos Not cias Um novo relat rio publicado em 8 de janeiro pelo Banco de Compensa es Internacionais ( BIS ) descobriu que setenta por cento dos bancos centrais em todo o mundo est o conduzindo pesquisas sobre a emiss o de moeda digitalSome are experimenting with DLT-based CBDCs, while others are opting for more centralized models. A new report from the BIS has found that 70 percent of central banks are conducting research into central bank digital currencies. 7532 World s First Bitcoin Brick and Mortar Swap Point to OpenThe experiences of these early adopters will help to shape the future of CBDC development.

Retail vs.Wholesale CBDCs: Understanding the Differences

As mentioned earlier, CBDC research and development can be broadly categorized into retail and wholesale applications. BIS: 70% of Central Banks Involved in CBDC Research, Only Several Have Concrete Plans A new report published on Jan. 8 by the Bank for International BIS: 70% of Central Banks Involved in CBDC Research, Only Several Have Concrete Plans A new report published on Jan. 8 by the Bank for International Settlements (BIS) has found that seventyUnderstanding the differences between these two types of CBDCs is crucial for appreciating their potential impact on the financial system.

Retail CBDCs are designed for use by individuals and businesses in everyday transactions. China To Develop Centralized Crypto, Protects JessicaThey would function much like physical cash, but in digital form.Key characteristics of retail CBDCs include:

• Accessibility: Available to the general public.
• Ease of Use: Designed for simple and convenient transactions.
• Potential for Financial Inclusion: Can provide access to digital payments for unbanked populations.
• Impact on Commercial Banks: Potential to disintermediate commercial banks by offering a direct alternative to deposit accounts.

Wholesale CBDCs, on the other hand, are intended for use by financial institutions in interbank payments and settlement.They could streamline and improve the efficiency of the wholesale payments system. not a direct claim on a central bank. This is not a CBDC by definition and lacks the neutrality and liquidity of central bank money (Box 1). Similarly, a liability issued by a central bank that is not in its own currency (ie where it does not have monetary author ity) is not a CBDC. Central banks continue to work on CBDCKey characteristics of wholesale CBDCs include:

• Limited Access: Restricted to financial institutions and other authorized participants.
• Focus on Efficiency: Designed to improve the speed, cost, and transparency of interbank transactions.
• Reduced Counterparty Risk: Can reduce counterparty risk by providing a central bank-backed settlement mechanism.
• Limited Impact on Retail Banking: Less likely to directly impact retail banking services.

Many central banks are exploring both retail and wholesale CBDCs simultaneously, recognizing that they can complement each other and contribute to a more efficient and resilient financial system.

The Two-Tiered System: A Preferred Approach

According to the latest BIS survey on CBDC development, more than 70% of central banks prefer a two-tiered CBDC system.This model involves the central bank issuing the CBDC and then distributing it through intermediaries, such as commercial banks. Skip to main content Bitcoin Insider. MenuThe two-tiered approach offers several advantages:

• Leverages Existing Infrastructure: It utilizes the existing infrastructure and expertise of commercial banks, reducing the burden on the central bank.
• Promotes Competition: It allows commercial banks to compete on the services they offer to CBDC users.
• Reduces Disintermediation: It minimizes the risk of disintermediation by preserving the role of commercial banks in the financial system.

In a two-tiered system, the central bank would be responsible for maintaining the integrity and stability of the CBDC, while commercial banks would be responsible for providing services to users, such as account management, payment processing, and customer support.

The Role of the Bank for International Settlements (BIS)

The Bank for International Settlements (BIS) plays a crucial role in facilitating international cooperation on CBDC development.The BIS defines a CBDC as a central bank-issued digital money denominated in the national unit of account, and it represents a liability of the central bank.

The BIS provides a platform for central banks to share information, exchange experiences, and collaborate on research projects. En el caso de Uruguay, el banco central del pa s ya ha completado un programa piloto para un prop sito general de las CBDC. Con el efectivo en circulaci n en declive, el banco central lanz un programa piloto de e-Peso en noviembre del 2025, que estaba notablemente basado en DLT.The BIS also conducts its own research on CBDCs and publishes reports that inform policy discussions and promote best practices.

Furthermore, the BIS Innovation Hub Centres are actively exploring the design and implementation issues of CBDCs in various jurisdictions.

CBDCs vs.Cryptocurrencies: Key Distinctions

It's important to distinguish between CBDCs and cryptocurrencies.While both are digital forms of money, they differ significantly in their underlying technology, governance, and risk profiles.

Here's a table summarizing the key differences:

CBDCs are designed to be a stable and reliable form of digital money, backed by the full faith and credit of the central bank. Among banks engaged in CBDC research, around half have reportedly moved to experiments and hands-on proof-of-concept work a 15 percent increase over 2025 although many of these PoCs are notably analytical in nature and do not indicate concrete CBDC issuance plans. Only five central banks have actually progressed to running CBDC pilotCryptocurrencies, on the other hand, are often characterized by their volatility and speculative nature.It is important to also note that assets not issued by the central bank (that is not a direct claim on the central bank) are not CBDCs and lack the neutrality of the central bank.

The Future of Money: What to Expect

The BIS report confirms that the exploration of CBDCs is not a passing fad but a serious undertaking by central banks worldwide.While the implementation of CBDCs is still in its early stages, the potential implications for the future of money are significant.As more central banks move from research to pilot programs, we can expect to see increased experimentation and innovation in the digital currency landscape.

Here are some potential developments to watch for:

• Increased Cross-Border CBDC Collaboration: Central banks will likely collaborate on cross-border CBDC initiatives to facilitate international payments and trade.
• Integration with Existing Payment Systems: CBDCs will need to be integrated with existing payment systems to ensure seamless interoperability.
• Development of New Regulatory Frameworks: Policymakers will need to develop new regulatory frameworks to address the unique challenges posed by CBDCs.
• Continued Focus on Security and Privacy: Central banks will prioritize the security and privacy of CBDC systems to build public trust and confidence.

Conclusion: Navigating the CBDC Landscape

The BIS report provides a valuable snapshot of the current state of CBDC development. Interest in central bank digital currencies, or CBDCs, is sweeping the financial sector, financial media and the central bank community. Most central banks are investigating design and implementation issues of CBDCs in their jurisdictions, and CBDCs are a major focus of the Innovation Hub Centres recently stood up by the Bank for International Settlements (BIS) around the world.While 70% of central banks are involved in research, the road to widespread implementation is long and complex.The challenges surrounding technology, privacy, financial stability, and regulation are significant, and central banks must carefully weigh the potential benefits and risks before moving forward. work rose to 93% (Graph 2.A). As in 2025, these central banks either focus on retail 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).However, it is undeniable that digital currencies are poised to play an increasingly important role in the future of finance, and that central banks must be prepared to adapt to this evolving landscape.Expect more research, pilot projects, and international collaboration as central banks explore their options and consider the implications of digital money for their economies.

The key takeaways from the BIS report and this analysis are:

• Most central banks are actively researching CBDCs, recognizing their potential.
• Only a small number have progressed to concrete implementation plans.
• Hurdles such as technology, privacy, and financial stability need careful consideration.
• The two-tiered system is a preferred approach, leveraging existing infrastructure.

The journey towards the adoption of CBDCs is ongoing, and its ultimate success will depend on the ability of central banks to address the challenges, build public trust, and adapt to the evolving needs of the digital age.