Worldwide practice and impact of digital currency of central bank’s implementation
- Authors: Glavina S.G.1
-
Affiliations:
- RUDN University
- Issue: Vol 32, No 4 (2024): TRENDS, STRATEGIES AND MANAGEMENT PROBLEMS IN THE CONTEXT OF GLOBAL DIGITAL TRANSFORMATION
- Pages: 577-589
- Section: DIGITALIZATION OF THE GLOBAL ECONOMY
- URL: https://journals.rcsi.science/2313-2329/article/view/324264
- DOI: https://doi.org/10.22363/2313-2329-2024-32-4-577-589
- EDN: https://elibrary.ru/JVACBP
- ID: 324264
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Abstract
The forced digital transformation of the banking industry and monetary policy were a response to the growing trend of increasing adoption of decentralized finance. The transition from traditional, physical forms of money and payment systems to digital currencies and blockchain technology represents a significant shift in the financial landscape. This transition is characterized by the development of unique, nonreplicable assets, which define cryptocurrencies and other forms of digital assets. These assets are actively responding to the rapid changes in financial markets and represent a major development in monetary systems. The introduction of central bank digital currencies (CBDCs) represents a key event in this transformation, and their potential as monetary policy instruments should not be overlooked. Governments around the world are addressing the challenges of implementing these new currencies and ensuring their transparency, while also considering their potential benefits for economic stability. This study will explore the current state of CBDC development and its implications for the future of monetary systems. By analyzing the motivations for CBDC initiatives, the challenges of integrating these digital currencies into existing financial systems, and their implications for international payments, privacy, and security, this study reveals the multifaceted consequences of this technological development. The research is based on an examination of global CBDC projects, identifying successful implementations and the diverse approaches taken by various countries. Ultimately, this article emphasizes the importance of international cooperation and the establishment of a regulatory framework in order to benefit from the potential benefits of CBDC while mitigating the associated risks.
About the authors
Sofia G. Glavina
RUDN University
Author for correspondence.
Email: glavina_sg@pfur.ru
ORCID iD: 0000-0002-5174-8962
SPIN-code: 4511-1442
Candidate of Science (In Economics), docent of the Political Economy Department, Faculty of Economics
6 Miklukho-Maklaya St, Moscow, 117198, Russian FederationReferences
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