CENTRAL BANK DIGITAL CURRENCY: WHAT FACTORS DETERMINE ITS ADOPTION?

Authors

Novi Maryaningsih, Bank Indonesia, IndonesiaFollow
Suahasil Nazara, University of Indonesia, IndonesiaFollow
Febrio N. Kacaribu, University of Indonesia, IndonesiaFollow
Solikin M. Juhro, Bank Indonesia, IndonesiaFollow

Document Type

Article

Abstract

This paper attempts to explain the differences in Central Bank Digital Currency (CBDC) adoption across emerging and advanced countries using an ordered probit model. Based on a cross-country dataset, we show that wholesale CBDC is more advanced in countries with developed financial markets and greater cross-border transactions. Retail CBDC is more advanced in countries with lower financial inclusion and a large informal economy. We further show that different factors affect retail CBDC adoption across emerging and advanced countries. However, cross-border transactions are the most crucial factor influencing wholesale CBDC adoption across emerging and advanced countries.

Recommended Citation

Maryaningsih, Novi; Nazara, Suahasil; Kacaribu, Febrio N.; and Juhro, Solikin M. (2022) "CENTRAL BANK DIGITAL CURRENCY: WHAT FACTORS DETERMINE ITS ADOPTION?," Bulletin of Monetary Economics and Banking: Vol. 25: No. 1, Article 8.
DOI: https://doi.org/10.21098/bemp.v25i1.1979
Available at: https://bulletin.bmeb-bi.org/bmeb/vol25/iss1/8

First Page

1

Last Page

24

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Bank Indonesia