Central bank digital currencies and financial stability in a modern monetary system

Tercero-Lucas, David

doi:10.1016/j.jfs.2023.101188

Cited by 8 publications

(4 citation statements)

References 42 publications

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“…In this study, we concentrated specifically on the components of "Access" and "Stability" within the framework, utilizing a subset of the indicators for assessing their role in nations' CBDC adoption. This emphasis aligns with prior research predictions, indicating that the adoption of CBDCs has the potential to enhance both access to [11] and stability of financial services [19]. We used the most recent data available for each variable in our study.…”

Section: Methodsmentioning

confidence: 58%

“…High level of democracy, public confidence in governance, regulatory quality, income inequality, FDI inflow, young populations, urban societies [13,14] Financial factors Higher levels of financial inclusion, net foreign assets, remittances, income [11] Cultural factors High power distance, masculinity, and long-term orientation [15] A mix of one or more of the above factors Government performance, inflation rate, economic inequality, technological literacy, anti-money laundering, and terrorist financing [16,17] CBDC Implications Enhance the effectiveness of current monetary policy instruments, financial inclusion, financial stability, Inclusive welfare [18][19][20][21]…”

Section: Economic Developmental Factorsmentioning

confidence: 99%

“…Building on earlier studies, our study primarily focuses on the elements of financial stability and accessibility that influence a country's decision to implement CBDCs. The literature extensively highlights the significance of CBDCs in enhancing financial stability [18,19] and broadening access to financial services [20,21]. Given this context, we believe that it is essential to understand the precise roles of financial stability and access in shaping a nation's inclination to adopt CBDCs.…”

Section: Conceptual Background and Hypothesis Developmentmentioning

confidence: 99%

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The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation

Mohammed,

De-Pablos-Heredero,

Montes Botella

2024

FinTech

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This study investigates the influence of a country’s financial access and stability and the adoption of retail central bank digital currencies (CBDCs) across 71 countries. Using an ordinal logit model, we examine how individual financial access, the ownership of credit cards, financing accessibility by firms, offshore loans, financial sanctions, and the ownership structure of financial institutions influence the probability of CBDC adoption in nations. These findings reveal that nations facing financial sanctions and those with substantial offshore bank loans are more inclined to adopt CBDCs. Furthermore, a significant relationship is observed in countries where many people have restricted financial access, indicating heightened interest in CBDC adoption. Interestingly, no statistically significant relationship was found between the adoption of CBDCs and the percentage of foreign-owned banks in each country. The results show that countries with low financial stability and financial access adopt CBDCs faster. This study expands our knowledge of how a nation’s financial situation influences its adoption of CBDCs. The results provide important and relevant insights into the current discussion of the direction of global finance.

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Section: Methodsmentioning

confidence: 58%

Section: Economic Developmental Factorsmentioning

confidence: 99%

Section: Conceptual Background and Hypothesis Developmentmentioning

confidence: 99%

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The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation

Mohammed,

De-Pablos-Heredero,

Montes Botella

2024

FinTech

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“…(2023b) expand upon a simple money multiplier model, and Ozili (2023a) conducts a systematic literature review. Tercero-Lucas (2023) applies the Diamond and Dybvig model and Kuehnlenz et al . (2023) undertake a literature review.…”

Section: Resultsmentioning

confidence: 99%

Central bank digital currencies: a comprehensive systematic literature review on worldwide research emergence and methods used

Fahad,

Bulut

2024

AJB

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PurposeThe purpose of this paper is to review the literature on Central Bank Digital Currencies (CBDCs) in light of the increasing demand for digital payments globally. It aims to assess the global research landscape, methodologies and data utilized in CBDC studies as their popularity grows.Design/methodology/approachThe paper employs a systematic literature review (SLR) framework, utilizing the Scopus database to identify 323 studies related to Central Bank Digital Currency or CBDC. Through a thorough manual screening process, 169 studies were selected for inclusion. The research employs R, Biblioshiny and Excel for data evaluation, classifying the studies into three methodological categories: quantitative, qualitative and mixed approaches. This classification allows for a detailed assessment of the research techniques and data used in the literature on CBDCs.FindingsThe findings include a diverse range of research methodologies and data employed in CBDCs literature, highlighting the growing interest and depth of academic investigation into this area. By categorizing papers according to research technique, the study provides a comprehensive evaluation of the academic landscape regarding CBDC research. It offers valuable insights for researchers, policymakers and stakeholders, contributing to an enhanced understanding of the complexities and opportunities presented by the development and implementation of CBDCs.Originality/valueThis study’s originality lies in its rigorous and transparent methodology for data from CBDC studies, offering a solid framework for future research. By evaluating global research growth within an SLR framework and categorizing studies by research technique, it contributes uniquely to the academic discourse on digital currencies. The paper provides a critical resource for researchers, lawmakers and stakeholders, enriching the knowledge base on CBDCs and supporting informed decision-making in the context of digital financial innovation.

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Central bank digital currency and corporate debt financing costs: Empirical evidence from China

Xiao,

Niu,

Xiang

et al. 2024

Finance Research Letters

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Central bank digital currencies and financial stability in a modern monetary system

Cited by 8 publications

References 42 publications

The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation

The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation

Central bank digital currencies: a comprehensive systematic literature review on worldwide research emergence and methods used

Central bank digital currency and corporate debt financing costs: Empirical evidence from China

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