Towards Central Bank Digital Currencies in Asia and the Pacific: Results of a Regional Survey (IMF Fintech)

Summary

• By August 2021, total crypto asset volume had grown by 230 percent year over year in Asian emerging market economies.p.7
• Crypto asset volume grew by more than 300 percent year over year in advanced Asian economies in August 2021.p.7
• The IMF survey covered 36 Asian economies, including 7 advanced economies, 10 emerging market economies, 8 LICs, and 11 PICs.p.8
• Based on survey responses, only 2 countries in the region—India and China—are very likely to issue a retail CBDC in the near term.p.13

Key insights

1. Interest in central bank digital currency research and development has grown rapidly across diverse income groups in Asia and the Pacific.p.7
2. High-income economies primarily focus on payment efficiency and safety, while middle-income countries also prioritize financial inclusion and financial stability.p.13
3. Most advanced CBDC projects in Asia prefer a two-tier hybrid operational model where the central bank issues the currency and private institutions distribute it.p.14
4. Only two jurisdictions in the Asia-Pacific region currently possess the formal legal authority required to issue a CBDC.p.11
5. Regional cross-border pilot initiatives such as Project mBridge and Project Dunbar demonstrate significant efficiency gains for international settlements.p.10
6. Pacific Island countries view digital currencies as potential mechanisms to mitigate severe disruptions caused by declining correspondent banking relationships.p.19
7. Cambodia successfully modernized its national payments infrastructure using blockchain technology in Project Bakong without launching a formal CBDC.p.31