Freitas, Miguel Lebre deNunes, André Daniel VinhasNunes, António Tomás Costa2025-01-032024-06-032024-05-17http://hdl.handle.net/10362/176977This study employs the Synthetic Control Method to investigate the impact of the Central Bank Digital Currency introduction in The Bahamas on bank deposit rates. Contrary to theoretical expectations, the results show a decrease in deposit rates compared to the synthetic control. The low adoption rate of the CBDC in its early stages and the rigidity of deposit rates likely contributed to this finding. The study highlights the importance of further study to understand the composition of private banks’ funding and change in deposit volume post-intervention and demonstrates how the methodology could be applied in future research.engCbdcCentral bank digital currencyFinancial stabilityMonetary policyBank profitabilitySand dollarThe BahamasFinancial innovationSynthetic control methodBank disintermediationmaster thesis203723538