A recent OMFIF survey indicates that central banks are optimizing cross-border payments through existing systems like FedNow. Interest in CBDCs has waned as stablecoins and tokenization gain traction.
Central Banks Shift to Stable Solutions
The survey revealed that 47% of central banks prefer improving payments through existing systems like FedNow, marking a slight increase from last year. Interest in CBDCs has dropped significantly, with only 13% showing interest in 2024 compared to 31% in 2023. This suggests a reconsideration of blockchain solutions by central banks.
Growing Interest in Tokenization
Tokenization, which turns assets into digital tokens, is becoming increasingly attractive to central banks. Over 40% of central banks in developed countries see potential in tokenization and plan to explore it more in the coming years.
Dominance of Traditional Systems in International Payments
Despite interest in tokenization and blockchain, traditional payment systems remain key in cross-border transactions. The BIS’s Project Nexus is developing a platform to connect various instant payment systems, solidifying the role of legacy platforms in international payments.
The shift of central banks' focus from CBDCs to traditional systems and tokenization reflects their cautious approach in adopting new technologies for payment processes. Legacy systems continue to dominate despite the growing interest in digital solutions.
