ECONOMIC AND TECHNOLOGICAL DRIVERS OF CENTRAL BANK DIGITAL CURRENCY DEVELOPMENT: A CROSS – COUNTRY ANALYSIS AND FUTURE DIRECTIONS OF DIGITAL MONEY

Abstract

In response to technological advancements and the decreasing use of physical currency, an increasing number of central banks are exploring the feasibility of central bank digital currencies as an alternative to traditional cash. This research study investigates the relationship between economic and technological factors and their impact on the development of central bank digital currencies in different countries. While previous studies have explored the effects of fixed broadband subscriptions and financial development, this study breaks new ground by analyzing the correlation between high-tech exports and the advancement of central bank digital currencies utilizing multiple regression analysis. Research findings indicate a positive correlation between fixed broadband subscriptions, high-tech exports, and financial development, with financial development being the most influential factor. This study provides valuable insights into the economic and technological factors driving central bank digital currencies projects. However, it underscores the need for further research to examine the barriers and risks associated with CBDC implementation.