CENTRAL BANK DIGITAL CURRENCY: WHAT FACTORS DETERMINE ITS ADOPTION?

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

Research output: Contribution to journalArticlepeer-review

10 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 languageEnglish
Pages (from-to)1-24
Number of pages24
JournalBuletin Ekonomi Moneter dan Perbankan
Volume25
Issue number2
DOIs
Publication statusPublished - 2022

Keywords

  • Central bank digital currency
  • Financial development
  • Financial inclusion
  • Technology adoption

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