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We do the research, you get the alpha! Get exclusive reports and access to key insights on airdrops, NFTs, and more! Subscribe now to Alpha Reports and up your game! Go to Alpha Reports The Bank for International Settlements (BIS) has found that 94% of central banks surveyed are exploring Central Bank Digital Currency (CBDC). But according to the report, central banks are more likely to issue wholesale CBDC than retail CBDC in the next six years. There is a significant difference between a CBDC that’s wholesale and retail. A wholesale CBDC is used for transactions that take place between banks and other financial institutions, whereas retail CBDC are meant for general public use—like buying a cup of coffee. This may come as a massive relief to market participants, as the vocal opposition deem retail CBDC to be a form of authoritarian outreach. Eighty six central banks took part in the BIS survey, which was conducted between October 2023 and January 2024. The report further suggests that stablecoins are not being used outside of the wider crypto ecosystem. “On crypto, the survey indicates that, to date, stablecoins are rarely used for payments outside the crypto ecosystem. Moreover, about two out of three responding jurisdictions have or are working on a framework to regulate stablecoins and other cryptoassets.” the authors wrote. Currently, the total market capitalization of stablecoins across all chains stands at nearly $162 billion, an increase of approximately $32 billion from the start of the year, according to DefiLlama. Among the central banks that are considering issuing retail CBDCs, more than half of them are contemplating safeguards like holding limits, along with implementing key features like interoperability, offline options and zero remuneration. CBDCs are a point of great contention, and recently they have become a political issue, likely due…

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Filed under: News - @ June 15, 2024 7:16 pm