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Theories supporting central bank digital currency development and its usefulness

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  • Ozili, Peterson K

Abstract

This paper presents some theories that support central bank digital currency development and its usefulness. The theories provide useful explanations for the development and use of central bank digital currency in the economy. Some theories show that information about central bank digital currency, as well as the perceived usefulness and ease of use of central bank digital currency, are crucial for its success. Other theories show that central bank digital currency can facilitate the flow of funds to economic agents, and enhance the functioning of the economic system, thereby contributing to economic growth. These theories are useful to economists, policymakers and researchers who are interested in how central bank digital currency affects economic activities.

Suggested Citation

  • Ozili, Peterson K, 2023. "Theories supporting central bank digital currency development and its usefulness," MPRA Paper 117806, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117806
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    File URL: https://mpra.ub.uni-muenchen.de/117806/1/Peterson%20ozili%20CBDC%20theories.pdf
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    References listed on IDEAS

    as
    1. Fred D. Davis & Richard P. Bagozzi & Paul R. Warshaw, 1989. "User Acceptance of Computer Technology: A Comparison of Two Theoretical Models," Management Science, INFORMS, vol. 35(8), pages 982-1003, August.
    2. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 717-737.
    3. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
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    Cited by:

    1. Xin, Baogui & Jiang, Kai & Santibanez Gonzalez, Ernesto D.R., 2024. "The coevolution effect of central bank digital currency and green bonds on the net-zero economy," Energy Economics, Elsevier, vol. 134(C).
    2. Ozili, Peterson K, 2024. "Thinking Fast and Slow about Central Bank Digital Currencies," MPRA Paper 120774, University Library of Munich, Germany.

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    More about this item

    Keywords

    CBDC; central bank digital currency; theories.;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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