Could migrant families encourage the adoption of CBDCs in developing countries?

Dominique Torre () and Qing Xu ()
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Dominique Torre: GREDEG, Université Côte d'Azur
Qing Xu: ICL, Junia, Université Catholique de Lille, LITL

Economics Bulletin, 2025, vol. 45, issue 2, 842 - 853

Abstract: We examine the potential of upcoming Central Bank Digital Currencies (CBDCs) to be used as a means of transferring remittances. In a simple theoretical model, CBDCs compete with traditional channels provided by specialized intermediaries and with digital transfer options already offered by fintech companies. Their success depends on factors such as anonymity, potential conversion into cash, and the network effects generated by CBDC transactions among recipients' families.

Keywords: Central Bank Digital Currencies; cross-border payments; fintechs; remittances; anonymity (search for similar items in EconPapers)
JEL-codes: D8 E5 (search for similar items in EconPapers)
Date: 2025-06-30
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