According to a new study by IBM, the majority of Central banks believe in the prospects of issuing its own digital currency (CBDC), but cannot determine the potential value of the cost of using blockchain.
In the report on the results of the IBM study and The Official Monetary and Financial Institutions Forum (OMFIF), considers the views of 21 of the Central Bank about the CBDC and distributed ledger technology (DLT). The survey was conducted from July to September of this year.
It was found that 38% of respondents already conduct testing CBDC for interbank transactions. Although the majority of respondents are not currently active in this area, they still believe that CBDC can be produced by the Central banks. The report focused on the fact that the establishment of the currency whose value is equal to the unit of fiat currency, may contribute to the elimination of credit risk and stabilize the cost of the token.
Respondents also expressed concern as to whether the distributed ledger technology to meet the expectations in this area, because the blockchain is often touted as a way to improve the efficiency of international transactions and reduce costs.
The report says:
"61% of the Central banks stated that they can do without the blockchain, because they carried out surveillance, which showed a slight increase in efficiency, given the technology is still in early stages of development. 76% of respondents said they can not determine the potential of blockhain because of the actions of various regulatory authorities".
The report also provides a list of all the existing cases where central banks are testing various projects that use DLT in cross-border transactions. Among them is the Jasper project, launched by the Bank of Canada, and Khokha — the project of the Bank of Thailand.
The report noted:
"None of the DLT cases Central banks did not consider the possibility of radical changes in their payment systems in the near future. The majority of respondents advocated the use of already existing platforms, RTGS (the system of gross payments in real time). Central banks decided that the blockchain technology needs to modernize before they will be able to solve the problems of speed and scalability".