Economic Impact Assessment of Digital Currency Adoption in Global Markets (International Academic Journal of Economics)

Summary

• The study presents a conceptual evaluation of digital currency adoption published in Vol. 13, No. 4 of the journal.p.1
• The authors established 4 research objectives to investigate the economic impacts of digital currencies on monetary policy and banking.p.3
• The thematic analysis framework was constructed using 4 sequential steps to examine secondary academic literature.p.5
• Central bank digital currencies function as sovereign digital money distinct from privately issued cryptocurrencies.p.2
• The migration of deposits into digital money can alter commercial bank funding and liquidity management.p.4
• The framework assesses digital currency impacts across economic growth, financial inclusion, monetary stability, and global integration.p.6

Key insights

1. CBDCs act as a digital sovereign counterpart to physical cash that can fundamentally alter payment systems and monetary dynamics.p.2
2. Evidence from early CBDC implementation in China demonstrates that adoption relies on economic and behavioral factors alongside technology.p.3
3. The introduction of CBDCs offers new central bank monetary channels while altering traditional commercial bank lending.p.4
4. Shifting bank deposits into CBDCs creates risks of financial disintermediation and liquidity pressures for commercial banks.p.4
5. Improving financial inclusion through digital currencies requires affordable access channels, identification systems, and digital literacy.p.4
6. Establishing interoperable cross-border digital payment platforms is essential to prevent international market fragmentation.p.7