Wholesale Central Bank Digital Currencies (wCBDCs)

As per the report, in recent years, much attention has been given to the retail application of Central Bank Digital Currencies (CBDCs).

Discussions and initiatives surrounding wholesale CBDCs have gained significant momentum in the past 24 months, to the extent that they are now eclipsing retail CBDC in terms of attention and development.

This shift has been driven by the increasing tokenisation activities in financial markets, alongside the rise of stablecoins and tokenised bank deposits. For instance, according to a report by Bernstein, stablecoin issuers now the 18th largest holder of U.S. Treasury notes, surpassing many sovereign states. Central banks now face a key decision: should they enhance their existing Real-Time Gross Settlement (RTGS) systems to meet the demands of the digital economy, or should they embrace the potential of cash tokenisation by issuing wholesale CBDCs on blockchain networks?

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