Determinants of central bank digital currency adoption – a study of 85 countries

Zhao Dong, Muhammad Umar, Umair Bin Yousaf and Sagheer Muhammad

Journal of Economic Policy Reform, 2024, vol. 27, issue 3, 316-330

Abstract: This study attempts to explore the macroeconomic development factors that determine countries’ decisions to implement CBDCs. The study uses data regarding CBDC adoption and macroeconomic variables from 85 countries spanning the 2013–2021 period. The results of the probit regression analysis show that higher levels of financial inclusion, net foreign assets, remittances, and income are associated with a higher probability of CBDC adoption. In contrast, higher values for the Human Development Index, manufacturing value added, and population growth rate are inversely correlated with the probability of CBDC adoption. The findings of the study have implications for both investors and policymakers.

Date: 2024
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DOI: 10.1080/17487870.2023.2275036

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