Odaily Planet Daily News According to the latest annual survey on the future of payments by the independent think tank Official Monetary and Financial Institutions Forum (OMFIF), although CBDCs were once considered a promising tool for enhancing cross-border payments, their popularity has sharply declined. The report shows that in 2024, only 13% of respondents support CBDCs as a solution, down from 31% in 2023, while nearly half (47%) of the surveyed central bank governors chose interconnected instant payment systems (such as the FedNow service in the U.S.) as their preferred future approach. In contrast, stablecoins received zero support for the second consecutive year, reflecting central bank governors' lack of confidence in their ability to enhance global financial infrastructure. The decline in interest in CBDCs coincides with the Bank for International Settlements (BIS) withdrawing from the mBridge project. Although the BIS denies political motives, this move highlights the tensions surrounding CBDC adoption globally. Additionally, the survey emphasizes the enduring dominance of the U.S. dollar, with only 11% of central banks reporting a decrease in dollar usage, primarily driven by geopolitical uncertainties that have increased demand for the dollar as a safe haven. The survey also highlights the challenges faced by the correspondent banking system, which has long facilitated international settlements but is increasingly seen as outdated and costly due to complex KYC and anti-money laundering (AML) requirements. The delayed adoption of the ISO 20022 messaging standard may exacerbate this declining trend, forcing central banks to explore alternatives such as tokenization. Over 40% of central banks in developed markets view tokenization as a promising innovation and plan to begin research in the next three to five years.

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