Central Bank Digital Currencies: A review of global trends in adoption, financial inclusion, and the role of country characteristics
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Author(s)Alper KoparanLink to ORCID Index: https://orcid.org/0009-0000-1614-922X
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DOIhttp://dx.doi.org/10.21511/imfi.22(1).2025.09
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Article InfoVolume 22 2025, Issue #1, pp. 107-121
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Creative Commons Attribution 4.0 International License
The global adoption of Central Bank Digital Currencies (CBDCs) represents a pivotal shift in monetary systems, driven by technological advancements and economic imperatives. While a small number of official digital currencies are in circulation, many nations are launching pilot programs to address financial inclusion challenges and enhance economic resilience. This study aims to identify the determinants of digital currency adoption across 116 countries, using logistic regression to analyze the effects of economic, technological, institutional, and financial factors.
The results show that higher GDP levels significantly increase the likelihood of active CBDC adoption by 332.1 percent and pilot adoption by 212.6 percent, reflecting the role of economic development. Greater internet usage improves the odds of active adoption by 12.7 percent and pilot adoption by 13.4 percent, while financial inclusion indicators, such as account ownership, increase the likelihood of adoption by 59 percent for active initiatives and 141 percent for pilot projects. Monetary freedom positively influences active adoption by 31.1 percent, and higher interest rates increase the odds by 20.8 percent. Conversely, business freedom negatively affects active adoption by 27.5 percent and pilot adoption by 29.1 percent, suggesting that countries with strong private-sector digital payment solutions may rely less on CBDCs.
These findings represent the transformative potential of digital currencies to improve financial inclusion and economic participation. Policymakers should prioritize investments in digital infrastructure and financial inclusion initiatives to facilitate the integration of digital currencies into national economies and empower underserved populations globally.
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JEL Classification (Paper profile tab)E58, G28, E52
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References36
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Tables4
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Figures0
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- Table 1. List of countries with launched or pilot CBDC program
- Table 2. Descriptive statistics
- Table 3. Correlation matrix
- Table 4. Logistic regression results
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Measuring the inclusiveness of international financing to tourism in Latin America and the Caribbean
Isabel Carrillo-Hidalgo ,
Juan Ignacio Pulido-Fernández
doi: http://dx.doi.org/10.21511/imfi.15(3).2018.02
Investment Management and Financial Innovations Volume 15, 2018 Issue #3 pp. 15-34 Views: 2207 Downloads: 217 TO CITE АНОТАЦІЯGlobally, tourism has been identified as a means of poverty reduction and development, and as a means of encouragement of females, minorities and small businesses to better engage in the mainstream of economic life. This paper examines whether the international and governmental financial support, grated by international financial institutions, is effectively achieving these aims in Latin America and the Caribbean. A series of indices are established in the paper that assess the extent to which such funding includes non-corporate enterprise while also considering the volume and nature of such funding. It is concluded that the goals of inclusiveness are not being met.
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The role of financial inclusion in financial stability: lesson from Jordan
Mohammad O. Al-Smadi
doi: http://dx.doi.org/10.21511/bbs.13(4).2018.03
Banks and Bank Systems Volume 13, 2018 Issue #4 pp. 31-39 Views: 2088 Downloads: 359 TO CITE АНОТАЦІЯThis study aims to examine the relationship between financial inclusion and financial stability in Jordan by using Fully Modified Least Squares (FMOLS) technique. The analysis is based on time series from 2006 to 2017. Jordanian financial inclusion index is developed to assess the level of financial inclusion, whereas financial stability was measured by Jordanian financial stability index proposed by Central Bank of Jordan. The results show a weak significant and positive impact of financial inclusion on the financial stability in Jordan. Additionally, five control variables are used in the study. The results show a negative impact of domestic credit to private sector, income inequality, financial integration, and global financial crisis on financial stability. In contrast, real GDP per capita has a significant and positive impact. It is expected that the findings of the study can be used by policy makers and supervising authorities to realize the objectives of the national strategy of financial inclusion in Jordan.
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Financial inclusion: disrupted liquidity and redundancy of mobile money agents in Zimbabwe
Last Mazambani ,
Tariro Juliet Rushwaya ,
Emmanuel Mutambara
doi: http://dx.doi.org/10.21511/imfi.15(3).2018.11
Investment Management and Financial Innovations Volume 15, 2018 Issue #3 pp. 131-142 Views: 1476 Downloads: 326 TO CITE АНОТАЦІЯMobile money agents (MMAs) are the pedestal of inclusive finance by bringing financial services closer to unbanked people by offering them capabilities to move from cash to electronic money and vice versa. This function is effective in an environment where hard cash is in uninterrupted circulation. The aim of this paper is to investigate implications of cash liquidity challenges in Zimbabwe to the development of financial inclusion through MMAs in a rural set-up. Phenomenological in-depth interviews were conducted with MMAs. Due to national liquidity challenges, MMAs ceased to receive cash float support, limiting their cash-in and cash-out services. Pure agents were adversely affected, while those who operate retail goods services reported increased goods sales through mobile money point-of-sale payments. Consumers are restricted to deal in electronic funds in the cashless economy making the cash-in and cash-out function of MMAs redundant. MMAs need support to sustain their operations and recoup invested capital in infrastructure. Risk management strategies, including the principal-agent contracts that minimize the exposure of MMAs to disruption of the service are important. MMAs could form an association to lobby financial regulators for support, negotiation with principals, market research, political power and active participation of agents in deepening financial inclusion. Perhaps pure MMAs could improve their economic sustainability by diversifying their businesses.
