Central bank digital currencies and the international payment system: The demise of the US dollar?

Kuehnlenz, Sophia; Orsi, Bianca; Kaltenbrunner, Annina

doi:10.1016/j.ribaf.2022.101834

Cited by 32 publications

(18 citation statements)

References 24 publications

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“…Regarding CBDC design, the effectiveness of a CBDC depends on its design choices (Ozili, 2023a). A CBDC can be designed as a retail or wholesale CBDC (Auer & Böhme, 2020; Kuehnlenz et al. , 2023).…”

Section: Theory Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…, 2023). A retail CBDC is accessible to the public for use as a general means of payment, while a wholesale CBDC is available only to eligible financial institutions (Auer & Böhme, 2020; Kuehnlenz et al. , 2023).…”

Section: Theory Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Fuchs (2022) argued that private cryptocurrencies allow for payments without the need for a financial institution or the central bank, but central banks can introduce an interest-bearing CBDC and provide a payment system which is superior to cryptocurrencies because cryptocurrency miners cannot match the CBDC interest rate; if they do, they will go bankrupt. Kuehnlenz et al. (2023) also argued that cryptocurrencies cannot be relied on as a medium of exchange because it fails to perform the functions of money.…”

Section: Theory Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Regarding CBDC design, the effectiveness of a CBDC depends on its design choices (Ozili, 2023a). A CBDC can be designed as a retail or wholesale CBDC (Auer & B€ ohme, 2020;Kuehnlenz et al, 2023). A retail CBDC is accessible to the public for use as a general means of Central bank digital currency payment, while a wholesale CBDC is available only to eligible financial institutions (Auer & B€ ohme, 2020;Kuehnlenz et al, 2023).…”

Section: Theory Literature Review and Hypothesis Development 21 Theorymentioning

confidence: 99%

“…Other motivations have not been explored such as interest in sustainable development and interest in cryptocurrency, among others. The use of cryptocurrency is increasing in society and many central banks are responding to cryptocurrency either by permitting it, regulating it, placing an outright ban on it or issuing a CBDC to counteract the rise of cryptocurrency (see Kuehnlenz, Orsi, & Kaltenbrunner, 2023; Ozili, 2023a). Also, the need to accelerate sustainable development is giving policymakers and central banks an additional motivation to launch a CBDC that could become a public digital payment tool to channel payments from individuals, firms and government to sustainable development projects or activities (Ozili, 2023e).…”

Section: Introductionmentioning

confidence: 99%

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Determinants of global interest in central bank digital currency: The role of sustainable development and cryptocurrency

Ozili

2023

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PurposeThis paper aims to investigate the determinants of global interest in central bank digital currency (CBDC). It assessed whether global interest in sustainable development and cryptocurrency are determinants of global interest in CBDC.Design/methodology/approachGoogle Trends data were analyzed using two-stage least square regression estimation.FindingsThere is a significant positive relationship between global interest in sustainable development and global interest in CBDC. There is a significant positive relationship between global interest in cryptocurrency and global interest in the Nigeria eNaira CBDC. There is a significant negative relationship between global interest in CBDC and global interest in the eNaira CBDC. There is a significant positive relationship between global interest in CBDC and global interest in the China eCNY. There is a significant negative relationship between global interest in cryptocurrency and global interest in the Sand Dollar and DCash.Originality/valueThe literature has not empirically examined whether global interest in sustainable development and cryptocurrency are factors motivating global interest in CBDC. This study fills a gap in the literature by investigating whether global interest in sustainable development and cryptocurrency are factors motivating global interest in CBDC.

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Section: Theory Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Theory Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Theory Literature Review and Hypothesis Developmentmentioning

confidence: 99%