CENTRAL BANK DIGITAL CURRENCY: WHAT FACTORS DETERMINE ITS ADOPTION?

Novi Maryaningsih; Suahasil Nazara; Febrio N. Kacaribu; Solikin M. Juhro

doi:10.21098/bemp.v25i1.1979

CENTRAL BANK DIGITAL CURRENCY: WHAT FACTORS DETERMINE ITS ADOPTION?

Novi Maryaningsih, Suahasil Nazara, Febrio N. Kacaribu, Solikin M. Juhro

Department of Economics

Research output: Contribution to journal › Article › peer-review

3 Citations (Scopus)

Abstract

This paper attempts to explain the differences in Central Bank Digital Currency (CBDC) adoption across emerging and advanced countries using an ordered probit model. Based on a cross-country dataset, we show that wholesale CBDC is more advanced in countries with developed financial markets and greater cross-border transactions. Retail CBDC is more advanced in countries with lower financial inclusion and a large informal economy. We further show that different factors affect retail CBDC adoption across emerging and advanced countries. However, cross-border transactions are the most crucial factor influencing wholesale CBDC adoption across emerging and advanced countries.

Original language	English
Pages (from-to)	1-24
Number of pages	24
Journal	Buletin Ekonomi Moneter dan Perbankan
Volume	25
Issue number	2
DOIs	https://doi.org/10.21098/bemp.v25i1.1979
Publication status	Published - 2022

Keywords

Central bank digital currency
Financial development
Financial inclusion
Technology adoption

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.21098/bemp.v25i1.1979

Cite this

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title = "CENTRAL BANK DIGITAL CURRENCY: WHAT FACTORS DETERMINE ITS ADOPTION?",

abstract = "This paper attempts to explain the differences in Central Bank Digital Currency (CBDC) adoption across emerging and advanced countries using an ordered probit model. Based on a cross-country dataset, we show that wholesale CBDC is more advanced in countries with developed financial markets and greater cross-border transactions. Retail CBDC is more advanced in countries with lower financial inclusion and a large informal economy. We further show that different factors affect retail CBDC adoption across emerging and advanced countries. However, cross-border transactions are the most crucial factor influencing wholesale CBDC adoption across emerging and advanced countries.",

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CENTRAL BANK DIGITAL CURRENCY: WHAT FACTORS DETERMINE ITS ADOPTION?

Abstract

Keywords

UN SDGs

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