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.
Maryaningsih, Novi; Nazara, Suahasil; Kacaribu, Febrio N.; and Juhro, Solikin M.
"CENTRAL BANK DIGITAL CURRENCY: WHAT FACTORS DETERMINE ITS ADOPTION?,"
Bulletin of Monetary Economics and Banking: Vol. 25:
1, Article 8.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol25/iss1/8