It’s been a while since a significant number of countries around the world have been working on developing their digital currency projects, to keep up with the ongoing crypto boom. It’s a race to become the first-ever nation to launch a CBDC (Central Bank Digital Currency). However, amidst all that the BIS or Bank of International Settlements has made a citation concerning the non-availability of any provision for cross-border payments in any of the projects.
The citation was made by BIS in its quarterly review published on 1st March. The review culminated in a report that mainly focused on the worldwide CBDC projects and the collective impact of the novel Coronavirus outbreak in China on the global market.
CBDC Report by BIS
In the report published by BIS, it was stated that at present around 17 governments are working on launching their respective CBDCs. The list includes countries like Norway, China, Brazil, Iceland, Israel, etc. After running a close analysis of all the ongoing projects it was cited by BIS that none of the countries have kept any provision to facilitate cross-border payments. This completely goes against the previous observations and claims made by global authorities regarding the Central Bank Digital Currency’s potential to facilitate instant, cost-effective and secured cross-border transactions.
It was further stated in the report that, countries like Switzerland and Denmark have already made it clear that the costs of retail CBDC overshadow the benefits at the current stage of development.
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Despite all that a significant number of nations, are continuing on their quest to develop retail Central Bank Digital Currencies. This has almost one-third of the Global banks claim that they prioritizing the issuance of retail CBDC as per the BIS report.
But the fact remains, that the lack of focus on the facilitation of cross-border payments, is proof enough that the concerned officials are unwilling to experiment with the novel national currency on a global scale.