 Does institutional quality matter for central bank digital currency adoption?Muhammad Umar, Fakhar Shahzad, Amjad Iqbal and Fanghua Tong Economic Analysis and Policy, 2024, vol. 83, issue C, 378-389 Abstract: This study investigates whether institutional quality influences the adoption of Central Bank Digital Currencies (CBDC). To address this question, data from 85 countries spanning from 2013 to 2021 was analysed. This study employs logistic, probit, and ordinary least squares regressions to assess the impact of the independent variables. The results indicate that institutional quality significantly affects CBDC adoption, with higher institutional quality associated with a greater likelihood of adoption. An in-depth analysis reveals that 'voice and accountability' is the most critical factor within the institutional indices that significantly explains CBDC adoption. A higher value for 'voice and accountability' correlates positively with a higher probability of CBDC adoption. The findings of this study hold important implications for researchers, analysts, and policymakers. Keywords: Institutional quality; Central bank digital currency (CBDC); CBDC adoption (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:83:y:2024:i:c:p:378-389 DOI: 10.1016/j.eap.2024.06.022 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
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