The World Economic Forum (WEF) reports that over 98% of central banks worldwide are actively researching, experimenting with, or implementing central bank digital currencies (CBDCs).
Wholesale CBDCs for Interbank Transactions
The WEF highlights the potential of wholesale CBDCs (wCBDCs) to address challenges in interbank payments and securities transactions. WCBDCs, designed for large transactions between financial institutions, could provide a secure and efficient alternative to traditional payment methods.
Cross-Border Transactions and Legal Considerations
The WEF also emphasizes the potential of wCBDCs to enhance cross-border transactions. However, it acknowledges that the legal and regulatory frameworks necessary for widespread wCBDC adoption remain uncertain.
Timeline for Widespread Adoption
While the WEF predicts that 24 CBDCs could be in operation by 2030, the timeline for widespread wCBDC adoption remains unknown. Legal and regulatory considerations, as well as the need for international cooperation, will likely influence the pace of implementation.
