The International Monetary Fund (IMF) published “THE ASCENT OF CBDCs” report noting that there are 100 CBDCs in research or development stages as of July 2022.
According to the report, out of the 100 CBDCs two are fully launched: the ‘eNaira’ in Nigeria launched in October 2021, and the ‘Bahamian sand dollar’, which was launched in October 2020.
Out of these 15 CBDCs are still in the testing phase. 65 nations are still conducting research on theirs, while 15 more are already in the Proof-of-concept phase. This information was obtained by the IMF from a tracking webpage for the CBDC.
The IMF says that while a CBDC may appear to have many advantages on paper, central banks must first decide whether there is a strong basis for adopting them, particularly whether there will be enough demand.
“Some have decided there is not, at least for now, and many are still grappling with this question,” the report states.
Additionally, the IMF stressed that the central banks must take into account the risks associated with issuing CBDCs. Users can take too much cash out of their accounts at once to buy CBDCs, which could lead to a crisis, says the IMF.
IMF emphasizes that the ability of central banks to manage the dangers brought on by cyberattacks while simultaneously preserving data privacy and financial integrity will need to be considered.