Economic uncertainty, central bank digital currency, and negative interest rate policy

The rise in popularity of central bank digital currencies. A systematic review

“…Another type of currency that could be used to promote sustainable development are social cryptocurrencies [ 125 ]. The energy consumption of blockchain technologies in general and Bitcoin in particular could also be reduced in order to promote green development through fiscal policies [ 126 , 128 ] and shortfalls regarding energy usage of cryptocurrencies need to be taken into account [ 129 ], together with the Environmental Performance Index (EPI) of cryptocurrency mining [ 127 ], reducing economic uncertainty with regard to CBDC [ 130 ].…”

The Impact of Digital Currency on Demand for Money: Evidence from Indonesia

“…In other words, the null hypothesis of no cointegration or no long-run relationship defined by H0 : λ1 = λ2 = λ3 = λt = 0 is tested against its alternative H1 : λ1≠ 0, λ2 ≠ 0, λ3 ≠ 0, λt ≠ 0 by computing the F-statistics. The distribution of this F-statistics is nonstandard irrespective of whether the variables in the system are I(0) or I (1). The critical values of the F-statistics.…”

“…Financial innovations have allowed people to conduct economic transactions far beyond the constraints imposed by physical currency [1], [9]. Recent innovations have allowed users to move away from paperbased exchange systems (such as checks) to electronic systems (such as swiping debit cards through a point-of-sale card reader) to using near-field communication (NFC) technology to enable radio communication through mobile-computing platforms (such as via applications on smartphones) [1], [5]. As with the 13th-century bills of exchange, these innovations are convenient mechanisms that allow users to use traditional currencies more efficiently.…”

“…Unlike money published by the central bank, electronic money is internal money. In other words, electronic money is like demand deposit owed by the holder from money publisher [1], [2], [3], [4], [5], [6]. Certainly, spurred by the recent progress in technology-centric payment systems like mobile payments, cryptocurrencies, and blockchain technologies, central banks globally have been actively considering the feasibility of introducing digital versions of traditional fiat currency known as central bank digital currencies (CBDC).…”

Default Probabilities and the Credit Spread of Mexican Companies: The Modified Merton Model

“…As Xi and Jiang [10] pointed out, the COVID-19 pandemic has led to the collapse of global economic activity, people have remained highly uncertain, and the economy still faces downward risks such as the COVID-19 persistence, financial turmoil, and further disruption of the global trade and supply chains.…”