TRANSFORMATIVE IMPACTS OF CENTRAL BANK DIGITAL CURRENCIES: RETHINKING MONETARY POLICY TRANSMISSION AND GLOBAL FINANCIAL STABILITY

Bekhruz Khujakulov

Authors

Bekhruz Khujakulov Author

Abstract

The global financial landscape undergoes continuous transformation, driven by technological advancements and evolving societal needs. A prominent development in this evolution is the emergence of central bank digital currencies (CBDCs). These digital representations of sovereign currency, issued by central banks, are gaining considerable attention from monetary authorities worldwide [56371582]. The motivation for their exploration stems from diverse factors, including the desire to enhance payment system efficiency, address declining cash usage, counter the rise of private cryptocurrencies, and foster greater financial inclusion [30804880] [36278443]. As central banks progress from conceptualization to piloting and, in some cases, implementation, understanding the profound implications of large-scale CBDC adoption becomes imperative for policymakers and financial stakeholders [30804880].

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