The latest report from the globally renowned research body has indicated that more than 80% of central banks are contemplating floating their individual central bank digital currency (CBDC) or have even done so.
In the report released on Monday, the two-yearly Global CBDC Index metrics evaluate a central banks’ level of organizational maturity in the supply and circulation of its digital currency; also included in the report is the first overview of stablecoins done by PwC.
According to a blockchain and crypto specialist at PwC UK, Haydn Jones, the report ranks both categories of CBDC; retail CBDCs issued for use by the public and wholesale CBDCs, used by financial institutions with holdings domiciled with the central banks.
According to the report, compared to the whole CBDC, retail CBDCs have been the most mature. An example is Nigeria’s “e-Naira” with a score of 95, which makes it the most mature across both categories. The e-Naira, despite its lack of use by the citizens of Nigeria, is the perfect model used for analyzing the maturity levels of central bank-issued CBDC.
Other CBDCs
The Bahamas was the first among others to launch a CBDC dubbed “Sand Dollar.” Jamaica’s Jam-Dex is, according to authorities, be established later in the year in the Caribbean region.
On the other hand, Thailand also makes a case for itself by the level of development and testing of its CBDC, which was widely announced in August last year.
Alongside Thailand in Hong Kong, which has been at the top of the wholesale category in terms of maturity level, it is widely commended for its project dubbed “mBridge,” whose focus is on international payments.
Others are Singapore and France, which have made tremendous efforts to develop unique CBDC projects for their respective monetary policies.
Required Preparedness
The blockchain and crypto specialist at PwC revealed that various countries are at different stages of development of their CBDC projects which is not uniform as there was no timetable for its completion.
In collaboration with other financial agencies in their respective countries, Central banks have their motivating factors for how they want the CBDC to be structured, designed, and issued. Still, the central theme is inclusive financial services.
Other factors are facilitating cross-border payments using CBDC tokens, checking financial crimes, and other critical factors that need consideration.
Also included in the report is the first overview of stablecoins by their market capitalization pegged to the USD, what purpose they serve in the more significant financial space, and the fiat currency backing them.
The report also noted that stablecoins are increasingly playing essential roles in the crypto ecosystem. Most funds or networks in the digital asset industry cannot function without using stablecoins. Also, most stablecoins are pegged to the USD, which protects it against price instability.
Overall, the growing relevance of digital currency has prompted most governments through their central banks to issue CBDC tokens pegged top their local fiat currencies.
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