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As global cooperation to develop and launch CBDCs further expands, the upcoming revolutionary innovation presents an emerging research field. This paper aims to provide a framework of CBDC by stressing its differences from the other available digital currencies and cash in terms of advantages and disadvantages. Thus, the CBDC outlook, in its curren...
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Citations
... One salient motivation driving the CBDCs is the aspiration to provide a contemporary, efficient, universally accessible and secure form of money (Chen et al., 2021;Ozturkcan et al., 2022). This could involve extending the reach of central bank money to marginalized or unbanked populations, or countering the declining use of physical cash in the face of burgeoning private digital payment methods (Chen, 2021). ...
... These developments has engendered central banks to refocus on CBDCs. About 60-90% of central bank are engaged in various stages of CBDC research, pilot or development (Allen et al., 2022;Boar & Wehrli, 2021;Ferrari et al., 2022;Huang & Mayer, 2022;Laboure et al., 2021;Ozturkcan et al., 2022;Pelagidis & Kostika, 2022;Xu, 2022;Yang & Zhou, 2022). The Bank for International Settlement estimates that within three years, fifty percent of the world's population will be using CBDC (Laboure et al., 2021;Tronnier et al., 2022). ...
... Table 1 summarizes the merits CBDC offering. Protect monetary sovereignty (Ozturkcan et al., 2022) Reduce cost of printing notes and coins (Cunha et al., 2021;Ozili, 2022;Zhang & Huang, 2022) promoting cashless economy (Cunha et al., 2021;Oh & Zhang, 2022) Promote Financial Inclusion Upscale Financial inclusion (Allen et al., 2022;Cunha et al., 2021;Laboure et al., 2021;Ozili, 2022) ...
... Take China as an example. Following the successful implementation of e-CNY in 10 cities across China, including Shenzhen, Suzhou, Xiong'an, Chengdu, Shanghai, Hainan, Changsha, Xi'an, Qingdao, and Dalian, Beijing is the next city on the agenda for widespread use of the digital currency (Cheng, 2022;Cunha et al., 2021;Ferrari et al., 2022;Huang & Mayer, 2022;Ozturkcan et al., 2022). There is a reported 261 million new e-CYN users by the end of 2021, resulting in transactions of about $13.78 billion USD (Huang & Mayer, 2022, p. 331). ...
The financial and monetary system is transitioning into contactless payment options and digital currencies. About 90 percent of the world's central banks are engaged in CBDC research, proof of concept, pilot, development, and launch, while the remaining are overlooking CBDC offerings. Notwithstanding, many central banks have cancelled their CBDC following their launch. While learning from the past failure is extoled as a virtue, learning from failed CBDC is seldom in the CBDC ecosystem, contrary to dominant literature on CBDC development and scalability. This study explores reasons why central banks discontinued already launched CBDC's. The authors adopted criterion sampling to select failed CBDC. This multiple case content analysis shows that low levels of trust, cybersecurity concerns, inadequate digital identification infrastructure, and obsolete and uncompetitive technology are the leading triggers of failed CBDC. Through the lens of actor-network theory (ANT), actors contributing to CBDC failure was identified
Central banks have historically been using traditional channels for communication and physical money for transactions, fulfilling the needs of previous millennia, while the evolution of technology, electronic devices, and needs in transactions necessitate the use of modern communication channels, such as X (formerly known as Twitter), as well as modern payment systems, such as central bank digital currencies (CBDC). Hence, this paper aims to unfold where the Central Bank of the Republic of Turkey (CBRT), as an example of emerging markets, stands in informing the public about CBDC. To this end, it conducts an event study on the official X account of CBRT in English over 10.2020-12.2022 by utilizing Nvivo. The findings of the quantitative analysis of the tweets show that CBRT does not regard X as a primary communication channel and mainly shares links to publications from the official websites in X. Also, CBRT tends to adopt a ‘cold-turkey’ informative approach about CBDC with the public rather than ‘gradualism’. Consequently, CBRT should rigorously design a communication strategy that fulfills the needs of the modern economy and start addressing CBDC to raise awareness if a quick transition to digital currency is targeted.
Purpose
The purpose of this paper is to review the literature on Central Bank Digital Currencies (CBDCs) in light of the increasing demand for digital payments globally. It aims to assess the global research landscape, methodologies and data utilized in CBDC studies as their popularity grows.
Design/methodology/approach
The paper employs a systematic literature review (SLR) framework, utilizing the Scopus database to identify 323 studies related to Central Bank Digital Currency or CBDC. Through a thorough manual screening process, 169 studies were selected for inclusion. The research employs R, Biblioshiny and Excel for data evaluation, classifying the studies into three methodological categories: quantitative, qualitative and mixed approaches. This classification allows for a detailed assessment of the research techniques and data used in the literature on CBDCs.
Findings
The findings include a diverse range of research methodologies and data employed in CBDCs literature, highlighting the growing interest and depth of academic investigation into this area. By categorizing papers according to research technique, the study provides a comprehensive evaluation of the academic landscape regarding CBDC research. It offers valuable insights for researchers, policymakers and stakeholders, contributing to an enhanced understanding of the complexities and opportunities presented by the development and implementation of CBDCs.
Originality/value
This study’s originality lies in its rigorous and transparent methodology for data from CBDC studies, offering a solid framework for future research. By evaluating global research growth within an SLR framework and categorizing studies by research technique, it contributes uniquely to the academic discourse on digital currencies. The paper provides a critical resource for researchers, lawmakers and stakeholders, enriching the knowledge base on CBDCs and supporting informed decision-making in the context of digital financial innovation.
To assess and comprehend the communication strategy used by the European Central Bank (ECB) throughout the Covid-19 pandemic and war in Ukraine, this study considers the crisis communication tactics of the ECB. The study analyzes 11,781 tweets from the ECB's official Twitter account using sentiment analysis to look at how the Bank interacts with the public and how it uses adaptive communication strategies in these trying times. This research innovatively employs the AFINN and NRC sentiment analysis methods to evaluate the ECB's crisis communication. NRC's use of a comprehensive lexicon for emotional identification complements the pre-computed sentiment ratings of AFINN. The ECB's use of positive, clear communication built public trust and underlines sentiment analysis's utility in strategic crisis communication. The study's detailed investigation offers insights for improving crisis communication plans for better public engagement and economic stability.
We identify some factors limiting CBDC adoption and some of the possible solutions. We also assess the media sentiment about central bank digital currencies in general as well as about locally issued CBDCs. We find that there is a high correlation between the negative media sentiment about CBDCs in general and locally issued CBDCs. We also find that the negative media sentiment about the eNaira, DCash and Sand Dollar was caused by the existing negative media sentiment about CBDCs in general. However, a positive media sentiment about the eNaira, DCash and Sand Dollar was not caused by the existing positive media sentiment about CBDC in general.
Central banks around the world are actively considering and developing central bank digital currencies (CBDC) as a response to the declining use and acceptance of physical cash and the rise of private and decentralized digital currencies. CBDCs are a type of central bank digital currency that can be used for a wide range of purposes, including digital payment. Central banks have the potential to provide a cost-effective and inclusive digital payment solution also for the unbanked population and support economic growth. However, the impacts of CBDCs are still uncertain, both in terms of the magnitude and probability of effects. Central banks should have a multifaceted strategy that includes understanding, identifying, managing, and mitigating risks associated with CBDC design to manage unintended macroeconomic consequences. This involves assessing demand for CBDCs, evaluating deposit structures and vulnerabilities to disintermediation, examining the effectiveness of proposed measures like caps, and considering changes in money velocity and monetary policies regimes. Strengthening liquidity management is crucial to mitigate liquidity risks arising from CBDCs funded by bank deposits. Therefore, this paper focuses on the impact of CBDCs on monetary policy, including deposit disintermediation and increased volatility of commercial bank reserves.
