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How does the fintech sector react to signals from central bank digital currencies?

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  • Li, Zhenghui
  • Yang, Cunyi
  • Huang, Zhehao

Abstract

This study analyzes how the fintech sector reacts to central bank digital currency (CBDC) signals released by central banks. First, we innovatively construct a signal index for the CBDC. Second, by collecting data from January 2012 to February 2022, the positively time-varying response of the fintech sector to the CBDC signals is found. Meanwhile, the response intensity reduces over time, thereby reflecting the weakening sensibility of the fintech sector to the CBDC signals. Third, shocks of symbolic events regarding the CBDC in the fintech sector are captured to further confirm the response to signals.

Suggested Citation

  • Li, Zhenghui & Yang, Cunyi & Huang, Zhehao, 2022. "How does the fintech sector react to signals from central bank digital currencies?," Finance Research Letters, Elsevier, vol. 50(C).
    • Handle: RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004913
    DOI: 10.1016/j.frl.2022.103308
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    References listed on IDEAS

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    Cited by:

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    10. Jiang, Yonghong & Ao, Zhiming & Mo, Bin, 2023. "The risk spillover between China’s economic policy uncertainty and commodity markets: Evidence from frequency spillover and quantile connectedness approaches," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
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    13. Byun, Junyoung & Ko, Hyungjin & Lee, Jaewook, 2023. "A Privacy-preserving mean–variance optimal portfolio," Finance Research Letters, Elsevier, vol. 54(C).

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