digital currency dissertation

Evaluation of Central Bank-issued Digital Currency (CBDC) Implementation Designs using Transaction Cost Economics Perspective

Contributors

Published Date

Reuse Rights

Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons.

The advancement in digital technology provides room for innovations in many sectors, including in the financial sector. The development of digital currencies is one example of digital advancements in this sector. Digital currencies can take many forms, and cryptocurrency is one of the most popular forms of digital currencies today. Bitcoin and other cryptocurrencies (or altcoins) have slowly been adopted around the world as a means of payment. However, Bitcoin and altcoins are not issued by the central banks or other central authorities, making it difficult to regulate. At the same time, in several countries, the use of cash is declining to a very low rate. As the response to these economic phenomena, central banks in some countries are investigating the possibility of introducing their own version of digital currency which is called central bank-issued digital currency or CBDC. This research shows how to implement transaction cost economics (TCE) framework to characterize transaction costs in several CBDC design options through in-depth semi-structured interview sessions. The interviewees were the experts from central banks, commercial bank, regulatory bodies, and relevant NGOs in the European developed economies. The results of the interview sessions showed several findings. First, according to the experts, there are three main CBDC design options: Retail CBDC, Wholesale CBDC, and Full-reserve Depository Banks CBDC. Second, among the three transactional dimensions of TCE (uncertainty, transaction frequency, and asset specificity), the uncertainty aspect provides a significant contribution to overall transaction costs. Third, the central bank and commercial banks are the ones that bear most of the transaction costs, especially in Retail CBDC design option, while the households and non-financial institutions do not need to bear any transaction costs.

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Download Free PDF

Digital currency adoption Dissertation

2022, University of Sussex

The focus of this study is to understand the main drivers of the phenomenal growth in adaptation of digital currency for everyday transactions in India. For a country with a 79% literacy rate (‘Literacy Rate in India 2022 | Kerala & Bihar Literacy Rate’, 2022) and with barely 5% population having working knowledge of English, the predominant language of internet, growth in adoption of digital currencies, replacing predominant paper currency, warrants a study. Despite the growth, there are still a lot of citizens who are reluctant to use digital currency, despite having the means to do so. Passive innovation resistance plays its role due to unique issues of “black money” while active innovation resistance is being dismantled with ease of use and through UX/UI to improve adoption of digital currency at a much faster pace.

Related papers

The advent of digital technologies, ample of our existing realities is undergoing radical changes. Those changes dramatically evolve and may even disappear over time. It is not known if there will be more or less physical form in the future. In this modernized era the world becomes a global village with taking scope of internet. With the passage of time everything goes behind the digital platform, e.g. education, trade and banking etc. In this situation monetary system of business world is not exceptional from being digital. Posing of currency for digitalisation is a burning issue. Currency is an exchange tool in commercial transaction. It is universally accepted by the people, its legal tender and value is guaranteed by the Government in an economy. Currency of an economy seems like water for a tree. A slightest shuffle can make an economy become haphazard. While we all agree that digitalisation fundamentally changes our society and current system. Perhaps, leads to a question whether our domain will benefit users from digitalisation. Currently it is look like difficult to estimate changes and technology will be the pioneer or the disruptive element starting to bring the revolution. There is always a silent struggle is ongoing between the inside the users mind on the acceptability of change. Now, we are seeing Digitalisation of a currency becoming emerging issue in the contemporary business world. Hence, it needs to study the users' behavior towards adoption and application of digitized currency. 2. DIGITAL CURRENCY: A digital currency is a currency that can be accessed digitally and a currency in electronic form. The digital currency has all its unique characteristics, whether it is real money or digital currency, and can be exchanged out-ofthe-box to perform consistently for global segmentation while connecting to supported devices and networks. Cryptocurrency Virtual Currency, Central Bank Digital Currency and e-cash although all cryptocurrencies are digital currencies, it is acknowledged that not all digital currencies are cryptographically equivalent. Digital currency is intangible money in digital or electronic form. Digital currencies go by various names such as digital money, electronic money, electronic money, cyber cash, etc., and tend to move between materials or between clients using assistive technologies such as PCs, mobile phones, and the Web. The Digital currency enables cross-border ownership exchange and instant marketing, and can be used for the purchase of goods and services. 1 Digital currency payments are made directly between the executing parties without an intermediary, so exchanges are generally cheaper at one time. These fees are in better contrast to conventional payment techniques, including banks. Digital currency-based electronic exchanges also acquire basic record keeping and transaction

CARDIOMETRY

The era of information and communication technologies has created many opportunities in every aspect. The field that has been benefitted the most from these recent developments in the financial and business sector. The scope and speed of evolution in technology, customer perception, and wide acceptance indicate that these technologies and disruptions will transform the finance and banking sector as we know it, providing both opportunities and challenges to financial institutions. Systems that have traditionally been used for savings, investments are not well suited given the scale and agility required for the digital age. Keeping in mind this array, financial institutions are responding with new digitization and innovation initiatives, using analytics, cloud technologies, and other new alternatives to respond to customer expectations. In a country like India, with a large economy and a despotic regime, the country shows decent economic growth even after having a complex system of ar...

Sachetas, 2022

The following paper discusses the introduction to Central Bank Digital Currency (CBDC) and how the adoption of such a measure will result in a developing economy like India looking at past references. The paper aims to reach new measures of adoption procedure and why it becomes essential to bring out such a concept at an early age. Various documents and research on technologies have proved the significance of virtual currencies. The social media forums which are abuzz with such investment options as provided by cryptocurrency market leads to a talk on potential regulation of the market for fiscal benefits. The committee developing such a digital currency has many options at hand, like hash graph or blockchain, POW or POS framework, adopting ABFT or not and others. The paper concludes determining the best measures a committee can adopt to frame CBDCs, discussing the pros and cons while timing the launch based on certain indices available yet lesser known in general.

This article explores the eRupee or digital rupee central bank digital currency in India. It explores the benefits and issues surrounding the central bank digital currency in India. The study found that Indian people who were interested in 'cryptocurrency' information were also interested in 'central bank digital currency' information. The study also showed that the introduction of CBDC has potential benefits such as reduced dependency on cash, higher seigniorage due to lower transaction costs and reduced settlement risk. However, the India CBDC has associated risks that need to be carefully evaluated against the potential benefits. The introduction of a digital rupee or CBDC in India will require legal and regulatory changes to make the phased CBDC implementation possible.

Crypto Currencies are gaining widespread attention all around the globe. Given many of the disadvantages and high risk involved in crypto transactions, new emergent mechanism of exchange like Central Bank Digital Currency (CBDC) are entering the market domain which seem relatively promising and less risked. Indian economy can be characterized by ever rising Non-Performing Assets (NPA), low money multiplier, tax evasion, poor tax base, menace of black money and high currency deposit ratio (CDR); our research finds that CBDC along with effective policy intervention mechanism can act as a panacea towards ebbing out such perplexities which the economy is confronting. Research points out the poor banking habit among the Indian population which is the primary driving force behind the big divorce between theoretical and actual money multiplier in India. Implementation of CBDC has the requisite potential towards developing banking habit in the masses. Akin to two faces of a coin, with charm...

Srinivas Publication, 2022

The Indian payments sector is undergoing far reaching changes, with digital payments capturing a sizable slice of the cake in recent years. The changes began from a fully cash economy to a less-paper-currency system. The Reserve Bank of India and its nodal agencies are working hard to make the digital India goal, a reality. Nearly one billion cards and more than two billion Prepaid Payment Instruments (PPI) such as online wallets, mobile applications, e-wallets, and digital payment modalities have pushed India into one of the world's fastest growing and largest digital payment ecosystem. In fact, an exponential increase in internet infrastructure boosted e-commerce. Unified Payment Interface, popularly known as UPI, is regarded as a revolutionary payment solution in the market for facilitating retail digital payments. The main objective of this paper is to identify innovations in India's digital payment landscape in a phased manner. While doing so, it also analyses the payment facilitating industry by applying PESTEL model to identify political, economic, technological, environmental and legal factors. Design/Methodology/Approach: This study examines India's digital payment landscape in terms of its gradual progress. Using the PESTEL model, it also analyses external factors that contribute to a less cash economy. Secondary sources were used to gather data for the study, which included reports, circulars, rules, and statements made by the Reserve Bank of India and other relevant organisations. Findings/Results: According to the study, India's digital payment segment has seen tremendous success since the implementation of UPI by the National Payment Corporation of India (NPCI) in 2016. The government's Direct Benefit Transfer (DBT) programme enabled the country to achieve financial inclusion of all citizens having access to banking services. Government legislation, regulator intent, social behaviour, increased smartphone usage, lower internet costs, and others significantly impacted the growth of the digital payment industry by ensuring secure, faster, cost-effective, and secure payment solutions. Originality/Value: This study examines the digital payment industry in India using the PESTEL methodology, which allows us to see the industry from all sides.

International Journal for Research in Applied Science and Engineering Technology IJRASET, 2020

The Government of India is regularly supporting and embracing the technological advancements necessary to promote digital inclusion among masses. New technologies such as Artificial Intelligence, Machine Learning, Biometric Identification and Blockchain technology brought new financial technologies namely Unified Payment Interface Services, Immediate Payment System and Mobile Banking/Wallet Services into existence. As a result of the revolutionary development of FinTech, Digital Finance Companies and Digital Financial Services, various new digital products emerged and became popular among masses because of their convenient, speedy, simple, and user-friendly functions. This article focuses on FinTech, Digital Finance, Digital Payments, and their role in Digital Financial Inclusion in India.

RESEARCH REVIEW International Journal of Multidisciplinary, 2022

In the never-ending evolving information technology era, this paper provides a review and insights of the significant contemplations that have been related with the market for digital currencies forms since their advancement as a monetary resource in 2009. Notwithstanding amazing value appreciation lately, computerized monetary forms or digital currencies have been exposed to allegations of estimating bubbles key to the trilemma that exists between regulatory oversight, the potential for illegal use through its obscurity inside a youthful immature trade framework, and infrastructural breaks affected by the development of digital guiltiness. Each impact the view of the job of advanced monetary standards as a trustworthy venture resource class and authentic of worth. In a limited ability to focus time, central banks have quickly increased their innovative work exertion on central bank digital currencies (CBDC’s). A developing group of financial examination illuminates these exercises,...

Trans stellar Journals, 2021

For a long time, the world has been moving toward all things digital. However, the year 2020 highlighted the urgent need to embrace new technologies as soon as possible. With the implementation of the lockdown, this adaptation happened almost instantly, particularly in India for digital payments. The Indian government has been promoting and propagating online payments sharply, beginning with demonetization back in 2016. 'Digital India' has been the spirit of the many economic and financial decisions that pushed Indians to modify online payments. In a country like India, where disparities are sometimes different, ensuring financial equality becomes a problem of prime importance. This study analyses the usage of Digital Payment Applications and the challenges faced by users. The findings show that1/3 of the respondents in the age group 25-35 have been personally impacted by fraud, data theft, etc. There is a need to create awareness about the precautions to be taken so that the users are not victimized due to fraudulent activities.

The study evaluates India’s technological advancement, which has created a range of opportunities for consumers to enter into digital payment space. Demonetization in India has forced all consumers and companies to embrace and create cashless digital payment platforms. The cashless economy scenario involves various factors for its adoption such as reach, availability and awareness. This study considers factors responsible for adopting new digital payment technologies in India’s different regions across various consumers. The study includes descriptive statistics and variance analysis (ANOVA) to identify elements to achieve maximum satisfaction. The research collects data from 250 respondents living in India, experiencing digital payments and online transactions. The data is collected through a structured questionnaire and critically analyzed using statistical analysis. The data has been analyzed with no sectorial biases and tracked by creating real-time indications. The study uses v...

Journal of Engineering and Manufacturing Technology, 2019

… rice-wheat cropping system. Natl Agric …, 2003

Il tempo dei Giudicati. La Sardegna dal X al XV secolo, a cura di S. Cisci, R. Martorelli e G. Serreli, Nuoro, ILISSO, 2023

Trans Revista Transcultural De Musica, 2000

PALLAS 122, 2023

Middle East Forum, 2024

Theoretical and Methodological Analysis of the Formation of “Soft-skills” in Higher Education Students of Pedagogical Specialties of Higher Education Institutions of Ukraine , 2023

Vitruvian, 2019

Research in Engineering Design, 2021

Technology and Culture, 1988

New Journal of Chemistry, 2019

PloS one, 2015

Archives of Insect Biochemistry and Physiology, 2007

Proceedings, 2017

British Journal of Surgery, 2022

Related topics

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

• < Previous

Home > Robinson College of Business > Robinson College of Business Executive Programs > Business Administration > BUS_ADMIN_DISS > 193

Business Administration Dissertations

Framing central bank digital currency: design and diffusion for cross-border payments.

Andrew C. Haskell , Georgia State University Follow

Author ORCID Identifier

https://orcid.org/0009-0002-9162-2253

Date of Award

Degree type.

Dissertation

Degree Name

Doctor of Business Administration (DBA)

First Advisor

Dr. Qian (Cecilia) Gu

Second Advisor

Dr. Lars Mathiassen

Third Advisor

Dr. Vikas Agarwal

We are undergoing a period of change whereby analog structures are yielding to their electronic successors, known as digitization. This change envelops much of society, including the currency we use to transact, as it lacks the immunity to resist this evolution underway. In response, Central Banks around the globe are exploring digital versions of currency – known as Central Bank Digital Currencies (CBDCs) – with many in research and development, and some that have launched and are live in production. In parallel, we are also undergoing change through globalization as commerce and communications span international boundaries to bring people and organizations closer together. To effectively operate in this rapidly changing environment, financial system participants are seeking improvements for orchestrating cross-border payments which suffer from undesirable characteristics of being slow, expensive, lacking transparency, and exclusiveness. As digitization and globalization forces converge, CBDCs are positioned to provide cross-border payment solutions that are faster, cheaper, more transparent, and more inclusive, thus remedying existing limitations insofar as Central Banks make appropriate decisions during the CBDC design process. These design choices include Architecture, Interoperability, and Technology, all of which contribute to currency adoption outcomes. However, failure through limited adoption is expensive, time-consuming, and reputationally detrimental to a Central Bank, warranting careful consideration of these CBDC design choices. This challenge presents an opportunity to contribute guidance for practitioners by leveraging theory and practical considerations together in creating unified solutions. Accordingly, this study builds upon and extends the Diffusion of Innovation Theory by adapting it to CBDC diffusion and introduces a complementary model expressing how CBDC innovations are designed for diffusion. These theoretical advances follow a multivocal systematic literature review and provide scholars with new foundations for future research. The result is a set of intellectual tools, validated through semi-structured interviews with subject matter experts – the Model of CBDC Diffusion, the Model of CBDC Innovation, the CBDC Design Framework, and Initial CBDC Design Typology – that can aid Central Banks when considering their design choices in pursuit of CBDC innovations for cross-border payments.

https://doi.org/10.57709/36975245

Recommended Citation

Haskell, Andrew C., "Framing Central Bank Digital Currency: Design and Diffusion for Cross-Border Payments." Dissertation, Georgia State University, 2024. doi: https://doi.org/10.57709/36975245

File Upload Confirmation

Since April 29, 2024

Advanced Search

• Notify me via email or RSS
• Collections
• Disciplines
• Submit ETD (Thesis/Dissertation)

Home | About | FAQ | My Account | Accessibility Statement

Privacy Copyright

• På svenska
•   Ammattikorkeakoulut
• LAB-ammattikorkeakoulu
• Opinnäytetyöt (Avoin kokoelma)
• Näytä viite

The development of central bank digital currencies : why central banks are developing their own central bank digital currencies?

Vuolli, tuomas; habtemariam, temesghen (2023).

Avaa tiedosto

Tiivistelmä, samankaltainen aineisto.

Näytetään aineisto, joilla on samankaltaisia nimekkeitä, tekijöitä tai asiasanoja.

Banking personnel 's experiences on a bank's organizational and operational change: Case company Bank X 

The European banking regulatory framework in turning point – How are the evolving banking regulations reshaping banking business in the EU? 

Successful Finnish Banking Performance in Global Financial Crisis : Comparative study of British bank, Northern Rock against the Finnish banking sector 

Selaa kokoelmaa, henkilökunnalle.