The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation
This study investigates the influence of a country’s financial access and stability and the adoption of retail central bank digital currencies (CBDCs) across 71 countries. Using an ordinal logit model, we examine how individual financial access, the ownership of credit cards, financing accessibility...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2024-02-01
|
| Series: | FinTech |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2674-1032/3/1/9 |
| _version_ | 1797241081852592128 |
|---|---|
| author | Medina Ayta Mohammed Carmen De-Pablos-Heredero José Luis Montes Botella |
| author_facet | Medina Ayta Mohammed Carmen De-Pablos-Heredero José Luis Montes Botella |
| author_sort | Medina Ayta Mohammed |
| collection | DOAJ |
| description | This study investigates the influence of a country’s financial access and stability and the adoption of retail central bank digital currencies (CBDCs) across 71 countries. Using an ordinal logit model, we examine how individual financial access, the ownership of credit cards, financing accessibility by firms, offshore loans, financial sanctions, and the ownership structure of financial institutions influence the probability of CBDC adoption in nations. These findings reveal that nations facing financial sanctions and those with substantial offshore bank loans are more inclined to adopt CBDCs. Furthermore, a significant relationship is observed in countries where many people have restricted financial access, indicating heightened interest in CBDC adoption. Interestingly, no statistically significant relationship was found between the adoption of CBDCs and the percentage of foreign-owned banks in each country. The results show that countries with low financial stability and financial access adopt CBDCs faster. This study expands our knowledge of how a nation’s financial situation influences its adoption of CBDCs. The results provide important and relevant insights into the current discussion of the direction of global finance. |
| first_indexed | 2024-04-24T18:17:40Z |
| format | Article |
| id | doaj.art-1384a034a7c84cb7a89015a1f2792d59 |
| institution | Directory Open Access Journal |
| issn | 2674-1032 |
| language | English |
| last_indexed | 2024-04-24T18:17:40Z |
| publishDate | 2024-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | FinTech |
| spelling | doaj.art-1384a034a7c84cb7a89015a1f2792d592024-03-27T13:38:07ZengMDPI AGFinTech2674-10322024-02-013113515010.3390/fintech3010009The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency ImplementationMedina Ayta Mohammed0Carmen De-Pablos-Heredero1José Luis Montes Botella2Department of Business Economics (Administration, Management, and Organization), Applied Economics II and Fundamentals of Economic Analysis, Universidad Rey Juan Carlos, Paseo de los Artilleros s/n, 28032 Madrid, SpainDepartment of Business Economics (Administration, Management, and Organization), Applied Economics II and Fundamentals of Economic Analysis, Universidad Rey Juan Carlos, Paseo de los Artilleros s/n, 28032 Madrid, SpainDepartment of Applied Economy I, Universidad Rey Juan Carlos, Paseo de los Artilleros s/n, 28032 Madrid, SpainThis study investigates the influence of a country’s financial access and stability and the adoption of retail central bank digital currencies (CBDCs) across 71 countries. Using an ordinal logit model, we examine how individual financial access, the ownership of credit cards, financing accessibility by firms, offshore loans, financial sanctions, and the ownership structure of financial institutions influence the probability of CBDC adoption in nations. These findings reveal that nations facing financial sanctions and those with substantial offshore bank loans are more inclined to adopt CBDCs. Furthermore, a significant relationship is observed in countries where many people have restricted financial access, indicating heightened interest in CBDC adoption. Interestingly, no statistically significant relationship was found between the adoption of CBDCs and the percentage of foreign-owned banks in each country. The results show that countries with low financial stability and financial access adopt CBDCs faster. This study expands our knowledge of how a nation’s financial situation influences its adoption of CBDCs. The results provide important and relevant insights into the current discussion of the direction of global finance.https://www.mdpi.com/2674-1032/3/1/9central bank digital currenciesfinancial developmentfinancial accessfinancial stabilityCBDC |
| spellingShingle | Medina Ayta Mohammed Carmen De-Pablos-Heredero José Luis Montes Botella The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation FinTech central bank digital currencies financial development financial access financial stability CBDC |
| title | The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation |
| title_full | The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation |
| title_fullStr | The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation |
| title_full_unstemmed | The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation |
| title_short | The Role of Financial Sanctions and Financial Development Factors on Central Bank Digital Currency Implementation |
| title_sort | role of financial sanctions and financial development factors on central bank digital currency implementation |
| topic | central bank digital currencies financial development financial access financial stability CBDC |
| url | https://www.mdpi.com/2674-1032/3/1/9 |
| work_keys_str_mv | AT medinaaytamohammed theroleoffinancialsanctionsandfinancialdevelopmentfactorsoncentralbankdigitalcurrencyimplementation AT carmendepablosheredero theroleoffinancialsanctionsandfinancialdevelopmentfactorsoncentralbankdigitalcurrencyimplementation AT joseluismontesbotella theroleoffinancialsanctionsandfinancialdevelopmentfactorsoncentralbankdigitalcurrencyimplementation AT medinaaytamohammed roleoffinancialsanctionsandfinancialdevelopmentfactorsoncentralbankdigitalcurrencyimplementation AT carmendepablosheredero roleoffinancialsanctionsandfinancialdevelopmentfactorsoncentralbankdigitalcurrencyimplementation AT joseluismontesbotella roleoffinancialsanctionsandfinancialdevelopmentfactorsoncentralbankdigitalcurrencyimplementation |