Factors driving central banks to launch digital currency: a global perspective analysis

Abstract

Resulting from a decline in cash payments and a shift towards digital payments, as cryptocurrencies and stablecoins gain popularity, Central Banks across the globe are looking to launch their own digital currency (CBDCs). This currency is expected to be a form of innovation that will foster the payment system regarding efficiency, safety and convenience. While the motivations behind each country to launch digital currency vary greatly, many commonalities in objectives are observed. Following a Business Project with Mastercard on the topic of digital currencies and smart cities, this study aims to explore the different motivations behind the launch of CBDCs.