Central Banks Digital Currency: Detection of Optimal Countries for the Implementation of a CBDC and the Implication for Payment Industry Open Innovation

Náñez Alonso, Sergio Luis; Jorge-Vazquez, Javier; Reier Forradellas, Ricardo Francisco

doi:10.3390/joitmc7010072

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Central Banks Digital Currency: Detection of Optimal Countries for the Implementation of a CBDC and the Implication for Payment Industry Open Innovation

Sergio Luis Náñez Alonso

Javier Jorge-Vazquez

^* and

Ricardo Francisco Reier Forradellas

DEKIS Research Group, Department of Economics, Catholic University of Ávila, 05005 Avila, Spain

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J. Open Innov. Technol. Mark. Complex. 2021, 7(1), 72; https://doi.org/10.3390/joitmc7010072

Received: 27 January 2021 / Revised: 18 February 2021 / Accepted: 19 February 2021 / Published: 24 February 2021

(This article belongs to the Special Issue Financial Open Innovations for Sustainable Economic Growth)

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Abstract

This article analyzes the current situation of Central Bank Digital Currencies (CBDCs), which are digital currencies backed by a central bank. It introduces their current status, and how several countries and currency areas are considering their implementation, following in the footsteps of the Bahamas (which has already implemented them in its territory), China (which has already completed two pilot tests) and Uruguay (which has completed a pilot test). First, the sample of potential candidate countries for establishing a CBDC was selected. Second, the motives for implementing a CBDC were collected, and variables were assigned to these motives. Once the two previous steps had been completed, bivariate correlation statistical methods were applied (Pearson, Spearman and Kendall correlation), obtaining a sample of the countries with the highest correlation with the Bahamas, China, and Uruguay. The results obtained show that the Baltic Sea area (Lithuania, Estonia, and Finland) is configured within Europe as an optimal area for implementing a CBDC. In South America, Uruguay (already included in the comparison) and Brazil show very positive results. In the case of Asia, together with China, Malaysia also shows a high correlation with the three pioneer countries, and finally, on the African continent, South Africa is the country that stands out as the most optimal area for implementing a CBDC. View Full-Text

Keywords: CBDC; digital currencies; monetary policy; digital transformation; financial inclusion; access to cash; central bank innovation

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MDPI and ACS Style

Náñez Alonso, S.L.; Jorge-Vazquez, J.; Reier Forradellas, R.F. Central Banks Digital Currency: Detection of Optimal Countries for the Implementation of a CBDC and the Implication for Payment Industry Open Innovation. J. Open Innov. Technol. Mark. Complex. 2021, 7, 72. https://doi.org/10.3390/joitmc7010072

AMA Style

Náñez Alonso SL, Jorge-Vazquez J, Reier Forradellas RF. Central Banks Digital Currency: Detection of Optimal Countries for the Implementation of a CBDC and the Implication for Payment Industry Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity. 2021; 7(1):72. https://doi.org/10.3390/joitmc7010072

Chicago/Turabian Style

Náñez Alonso, Sergio L., Javier Jorge-Vazquez, and Ricardo F. Reier Forradellas. 2021. "Central Banks Digital Currency: Detection of Optimal Countries for the Implementation of a CBDC and the Implication for Payment Industry Open Innovation" Journal of Open Innovation: Technology, Market, and Complexity 7, no. 1: 72. https://doi.org/10.3390/joitmc7010072

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Central Banks Digital Currency: Detection of Optimal Countries for the Implementation of a CBDC and the Implication for Payment Industry Open Innovation

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