Pages: 7-22
Introduction. The introduction of Central Bank Digital Currencies (CBDCs) has been motivated by several factors, including the accelerating pace of digital transformation, the declining use of cash, the emergence of cryptocurrencies, and the imperative to modernize payment systems. The paper undertakes a thorough examination of the development and implementation of CBDCs, with a particular focus on initiatives in the Bahamas (Sand Dollar), Nigeria (eNaira), and Jamaica (JAM-DEX). Utilizing a range of research methods, including a literature review and synthesis, as well as a comparative analysis, the paper assesses the benefits, challenges, and status of CBDC implementation. Key indicators analysed include financial inclusion, transaction efficiency, cybersecurity, and the impact on monetary policies.
Aim of the study. The study underscores the role of central banks in fostering user confidence and navigating the risks associated with financial innovation. It further emphasizes the necessity of a symbiotic relationship between public and private sector entities to formulate bespoke solutions tailored to the needs of each economy. CBDCs are regarded as an opportunity to curtail reliance on cash, combat money laundering and terrorist financing, and improve transaction transparency. The findings underscore the contributions of CBDCs to financial inclusion and the modernization of payment systems, while concurrently highlighting the bothers related to privacy, security, and user acceptance. The paper’s conclusion asserts that CBDCs possess the potential to transform global financial systems, yet they require innovative designs, international collaboration, and strong strategies to overcome the associated risks and maximize benefits.
