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PwC noted the Bahamas as a leader in the CBDC race in its recently published 1st edition of “PwC CBDC global index.”
The Bahamas is ranked first in the retail development of the central bank digital currencies (CBDC) globally. A survey by consulting firm PwC placed the Bahamas on top of the leaderboard compared to other countries in the global race to create government-backed cryptocurrencies.
Bahamas and Retail CBDC Development
The Bahamas led other countries with 92% in retail CBDC ranking. Followed by the Bahamas is Cambodia, which scored 83%. The next two on the list are Mainland China, with a 75% score, and Ukraine with 71%. The other countries on the top ten list include Uruguay (71%). Ecuador (71), Eastern Carribean (61%). Others are Sweden (58%), South Korea (51%), Turkey (42%).
The Bahamas was able to attain the position resulting from its Sand Dollar that was implemented last year October. The Sand Dollar is a digital version of the national currency and is backed by the Central Bank of Bahamas.
PwC noted the Bahamas as a leader in the CBDC race in its recently published 1st edition of “PwC CBDC global index.” PwC said that its global CBDC index is designed to measure the central bank’s level of maturity in deploying their CBDCs. In the publication, the consulting firm said that it considered its survey based on two factors. The first is retail CBDC, while the second factor is interbank or wholesale CBDC. As stated in the 2021 PWC Global CBDC Index, retail CBDCs are held by individuals and companies as a form of digital cash. Interbank or wholesale CBDCs are limited to financial institutions for interbank payments and settle financial processes.
“We believe CBDCs will continue significantly to the modernisation of the international monetary landscape, hand-in-hand with reconfiguration in both payment and financial infrastructure. They will generate numerous opportunities for further digitisation in both corporates and financial institutions, as their integration in payment and financial infrastructure progresses,” added the firm.
Thailand and Hong Kong as Top Players in Project Maturity for Interbank CBDCs
Furthermore, Thailand and Hong Kong are the top players in project maturity for interbank CBDCs. Thailand has been working on CBDC since 2018 and has been progressive. Both Thailand and Hong Kong scored 80 out of 100. The third country on the list is Singapore, with 75%. Additionally, the fourth is the United Kingdom, which scored 68%, followed by France with 64%.
According to Benoit Sureau, a PwC partner for the France and Maghreb region, CBDC is a “game-changer” that will give “access to alternative payment solutions for citizens and corporates.” He added that over 60 central banks across the globe are towards the creation of CBDCs since 2014.
Notably, there have been significant changes with certain CBDC projects as some countries conduct several trials and now approaching launch. In addition, the participation of institutions in CBDC serves as fuel for further progress. Public stakeholders, including the World Bank, the International Monetary Fund, and Bank for International Settlements, are majorly participating in CBDC projects.