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

Abstract

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.

Central Bank Digital Currency and the Monetary Policy and Financial Stability Implications

“…It was found that about four percent of the respondents understand CBDC, and about ten percent of them are willing to adopt CBDC. Meanwhile, Ozili (2023c) showed that interest in CBDC information is driven by interest in cryptocurrency and sustainable development information. Furthermore, Baeriswyl (2023) argued that the public can use CBDC to improve digital payments resilience, and to promote payment systems diversity and sovereignty.…”