Approximately 70 per cent of central banks are researching how to use digital currencies, a survey by the Bank for International Settlements (BIS) has revealed, stating that the banks are “proceeding cautiously” with plans.

Almost 25 per cent of the survey respondents have, or will soon receive, the authority to issue a central bank digital currency (CBDC), the research found.

Despite this, more than 85 per cent of central banks said they were unlikely to issue any type of digital currency in the short term.

According to the study, most central banks are “conducting research” and “many are progressing from conceptual works into experimentation and proofs-of-concept, including in cooperation with other central banks”.

The BIS highlighted that “different central banks will continue to move at different speeds. This creates a potential risk for spillover effects across borders”.

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