Skip to main content
SpringerLink
Log in

Central Bank Digital Currencies (CBDCs): The Global Development Trends and Prospects for Use as Investment Objects

  • Chapter
  • First Online:
Remote Investment Transactions in the Digital Age

Part of the book series: Intelligent Systems Reference Library ((ISRL,volume 250))

  • 110 Accesses

Abstract

The chapter investigates the trends in Central Bank Digital Currencies (CBDCs) development and implementation around the globe, which is central banks’ response to the challenges of the financial sector digitalization. Based on a study of a host of empirical data, including data from the Bahamas, Nigeria and Jamaica, where CBDCs have been officially introduced on a full scale, the authors conducted a comparative analysis of the current dynamics of CBDCs project implementation across 116 countries and regions of the global economy. The article discusses the current state of CBDC projects, identifies the main reasons for central banks’ engagement in CBDC research and development, and reveals the factors that caused the termination of CBDC project or its status transformation in Finland, Denmark, Ecuador, Kenya, Haiti, Philippines and Singapore. A short-term perspective is, then, provided on the prospects for ‘retail’ and ‘wholesale’ CBDCs. Also substantiated by the study is the potential of central bank digital currencies as investment objects. To address central banks’ financial and investment digitalization challenges, the authors identified the basic principles for successful CBDC deployment.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Adrian, T., Mancini-Griffoli, T.: The Rise of Digital Money. IMF Fintech Notes Note/19/01. International Monetary Fund, Washington, DC (2019)

    Google Scholar 

  2. Agboola, O.: One year later: eNaira as a force for financial inclusion and digital payments. OMFIF 10 January 2023. https://www.omfif.org/2023/01/one-year-later-enaira-as-a-force-for-financial-inclusion-and-digital-payments/ (2023). Accessed 17 July 2023

  3. Ahmed, S., Addae, J., and Ofori, K.: Learnings from discontinued central bank digital currencies (CBDC): a multiple case study analysis. In: Exploring the Dark Side of FinTech and Implications of Monetary Policy. Igi Global Publisher of Timely Knowledge, pp. 165–186 (2023). https://doi.org/10.4018/978-1-6684-6381-9.ch008

  4. Auer, R., Boehme, R.: The technology of retail central bank digital currency. BIS Q. Rev. March, 85–100 (2020)

    Google Scholar 

  5. Bank of Jamaica Annual Report 2022. Report and Statement of Accounts for the Year Ended 31 December 2022. Bank of Jamaica, Kingston (2023)

    Google Scholar 

  6. Bjerg, O.: Designing New Money: The Policy Trilemma of Central Bank Digital Currency. Copenhagen Business School, CBS. MPP Working Paper, June (2017).

    Google Scholar 

  7. Brunnermeier, M., James H., and Landau, J.-P.: The digitalization of money. NBER Working Paper 26300, September (2019). DOI https://doi.org/10.3386/w26300

  8. CBDCs in emerging market economies. BIS Papers 123, April. Bank for International Settlements (2022)

    Google Scholar 

  9. CBDCs: an opportunity for the monetary system. In: BIS Annual Economic Report 2021, pp. 65–95 (2021)

    Google Scholar 

  10. Central bank digital currencies: foundational principles and core features. Bank for International Settlements (2020)

    Google Scholar 

  11. Central Bank Digital Currency (CBDC) Tracker. https://cbdctracker.org/. Accessed 16 August 2023

  12. Central Bank of the Bahamas 2022 Annual Report. Central Bank of The Bahamas (2022)

    Google Scholar 

  13. Current Philippine Digital Landscape: What’s Next Beyond the Digital Payments Transformation Roadmap. The Bangko Sentral NG Pilipinas, May 29 (2023)

    Google Scholar 

  14. Directive 2000/46/EC of the European Parliament and of the Council of 18 September 2000 on the taking up, pursuit of and prudential supervision of the business of electronic money institutions. https://eur-lex.europa.eu/ (2000). Accessed 15 June 2023

  15. Discussion Paper on Central Bank Digital Currency: Comments from the Public. Central Bank of Kenya, May (2023)

    Google Scholar 

  16. Fáykiss, P., Szombati, A.: The conceptual framework of central bank digital currencies. In: At the Dawn of a New Age—Money in the 21st century, Magyar Nemzeti Bank, pp. 95–134 (2021)

    Google Scholar 

  17. Ferrari, M., Mehl, A., Stracca, L.: Central bank digital currency in an open economy. ECB Working Paper Series 2488, November (2020)

    Google Scholar 

  18. Goodhart, Ch., and Krueger, M.: The impact of technology on cash usage. Financial Markets Group Discussion Papers 374, April. Financial Markets Group, The London School of Economics and Political Science, London, UK (2001)

    Google Scholar 

  19. Gormez, Y., Capie, F.: Surveys on electronic money. Bank of Finland Discussion Papers 7/2000, Bank of Finland, Helsinki (2000)

    Google Scholar 

  20. Grym, A.: Lessons learned from the world’s first CBDC. BoF Economics Review 8 (2020)

    Google Scholar 

  21. Inshakov, O.V.: Systems-level analysis of the object, subject and method of economics. Izvestia Sankt-Peterburgskogo gosudarstvennogo universiteta ekonomiki i financov [Proceedings of the St. Petersburg University of Economics and Finance] 4, 5–18 (2004)

    Google Scholar 

  22. Jahan, S., Loukoianova, E., Papageorgiou, E., X Che, N., Goel, A., Li, M., and Zhou, Y. S.: Towards Central Bank Digital Currencies in Asia and the Pacific: Results of a Regional Survey. IMF Fintech Notes 2022/009, International Monetary Fund, Washington, DC (2022). DOI: https://doi.org/10.5089/9798400221521.063

  23. Kenya central bank says digital currency not a ‘compelling priority’. Reuters, June 2 (2023)

    Google Scholar 

  24. Konvisser, J.: Coins, Notes, and Bits: The Case for Legal Tender on the Internet. Harvard Journal of Law & Technology 10(2), Winter, 321–352 (1997)

    Google Scholar 

  25. Kosse, A., Mattei, I.: Making headway—results of the 2022 BIS survey on central bank digital currencies and crypto. BIS Papers 136, July (2023)

    Google Scholar 

  26. Kumhof, M., and Noone, C.: Central bank digital currencies—design principles and balance sheet implications. Bank of England Staff Working Paper 725. Bank of England, May (2018)

    Google Scholar 

  27. Le, T.D,Q., Tran, S.H., Nguyen, D.T., and Ngo, T. The degrees of central bank digital currency adoption across countries: a preliminary analysis. Econ. Bus. Lett. 12(2), 97–104. (2023). https://doi.org/10.17811/ebl.12.2.2023.97-104

  28. Lessons from the first implemented CBDC: the Sand dollar. Digital Euro Association on June 23 (2023).

    Google Scholar 

  29. Muir, M.: Jamaica, we have a CBDC. Financial Times, July 20 (2023).

    Google Scholar 

  30. Onu, E.: Nigeria Digital Currency Transactions Jump 63% on Cash Shortages. Bloomberg News, Mar 21 (2023)

    Google Scholar 

  31. Public Update on the Bahamas Digital Currency – SandDollar: Press Release. The Central Bank of Bahamas, April 3 (2023)

    Google Scholar 

  32. Ramasastry, A.: Nonbank issuers of electronic money: prudential regulation in comparative perspective. In: Current Developments in Monetary and Financial Law 4, pp. 663–707. IMF (2008). https://doi.org/10.5089/9781589065079.072

  33. Ree, J.: Nigeria’s eNaira, One Year After. IMF Working Paper 2023/104 (2023)

    Google Scholar 

  34. Retail Central Bank Digital Currency: Economic Considerations in the Singapore Context. Monetary Authority of Singapore. Singapore, November (2021)

    Google Scholar 

  35. Sakharov, D.M.: Central bank digital currencies: key aspects and impact on the financial system. Theory Pract. 25(5), 133–149 (2021). https://doi.org/10.26794/2587-5671-2021-25-5-133-149

  36. Semeko, G.V.: Central banks digital currency: Principles, potential and challenges. Soc. Nov. Soc. Sci. 1, 86–100 (2022). https://doi.org/10.31249/snsn/2022.01.07

    Article  Google Scholar 

  37. Slow rollout of digital wallets, merchant acceptance hobbling Jam-Dex. The Gleaner, August 23 (2023)

    Google Scholar 

  38. Stenly, A.: CBDC Rise. Finance and Development, Sept, 48–49 (2022)

    Google Scholar 

  39. Survey of Electronic Money Developments. Committee on Payment and Settlement Systems, May 2000. BIS, Basel, Switzerland (2000)

    Google Scholar 

  40. Zaporozhan, A.Y.: Digital ruble of the central bank of the russian federation. Adm. Consult. 6, 32–39 (2021)

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Volgograd State University, Volgograd, Russia

    Elena I. Inshakova, Elena G. Russkova & Larisa V. Ponomareva

Authors
  1. Elena I. Inshakova
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Elena G. Russkova
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Larisa V. Ponomareva
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Elena I. Inshakova .

Editor information

Editors and Affiliations

  1. Department of Civil and International Private Law, Volgograd State University, Volgograd, Russia

    Agnessa Inshakova

  2. Department of Civil and International Private Law, Volgograd State University, Volgograd, Russia

    Denis Matytsin

  3. Department of Economics, Regional Economy and Entrepreneurship, Volgograd State University, Volgograd, Russia

    Elena Inshakova

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Inshakova, E.I., Russkova, E.G., Ponomareva, L.V. (2024). Central Bank Digital Currencies (CBDCs): The Global Development Trends and Prospects for Use as Investment Objects. In: Inshakova, A., Matytsin, D., Inshakova, E. (eds) Remote Investment Transactions in the Digital Age. Intelligent Systems Reference Library, vol 250. Springer, Cham. https://doi.org/10.1007/978-3-031-51536-1_9

Download citation

Publish with us

Policies and ethics

Search

Navigation