CENTRAL BANK DIGITAL CURRENCY: WHAT FACTORS DETERMINE ITS ADOPTION?

Novi Maryaningsih (), Suahasil Nazara (), Febrio N. Kacaribu () and Solikin Juhro
Additional contact information
Novi Maryaningsih: University of Indonesia, Bank Indonesia
Suahasil Nazara: University of Indonesia
Febrio N. Kacaribu: University of Indonesia

Bulletin of Monetary Economics and Banking, 2022, vol. 25, issue 1, 1-24

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.

Keywords: Central bank digital currency; Financial development; Financial inclusion; Technology adoption (search for similar items in EconPapers)
JEL-codes: E58 F42 O33 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:25:y:2022:i:1a:p:1-24

DOI: 10.21098/bemp.v25i1.1979

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