IDEAS home Printed from https://ideas.repec.org/a/aiy/jnjaer/v24y2025i2p685-713.html
   My bibliography  Save this article

Factors and Consequences of the Distribution of retail Central Banks Digital Currencies: Global Experience and Conclusions for the Digital Ruble

Author

Listed:
  • Elena D. Dzhaokhadze
  • Elena V. Sinelnikova-Muryleva

Abstract

The spread and popularization of cryptocurrencies, as well as the rapid digitalization of the payment sector, have prompted many monetary authorities, including the Bank of Russia, to develop central bank digital currencies (CBDCs). The upcoming launch of the digital ruble makes it relevant to study the consequences of its implementation. The purpose of this paper is to study the prospects for launching CBDCs in Russia based on existing international experience. For this purpose, firstly, an overview of the main risks and consequences of issuing digital currencies was conducted. Secondly, through statistical and graphical analysis, the practical experience of the circulation of eNaira (Nigeria), Sand Dollar (Bahamas) and e-CNY (China) was studied, taking into account country differences in inflation and interest rates: the impact of CBDC emission on the dynamics of narrow money supply components; cross-country comparison of the speed of digital currency spread relative to cash and narrow money supply. Third, factors influencing the level and heterogeneity in the speed of digital currency spread were summarized. Fourth, based on the experience gained, the prospects for launching the digital ruble were analyzed. The main concerns regarding the emission of the CBDC are related to the risks of disintermediation and "bank runs" during crisis episodes. In order to be able to control possible negative consequences, monetary authorities, including the Bank of Russia, install in the design of the digital currency the absence of interest payments, a two-tier administration system, limits on the volume of transactions and storage. The experience of Nigeria, the Bahamas and China indicates, firstly, that the main concerns regarding the launch of the CBDC will not come true in the first years of circulation, and secondly, that the new means of payment is rolling out extremely slowly. The analysis highlights the importance of careful planning of the strategy for implementing the digital ruble, including multiple channels for informing people about the advantages of the new means of payment, as well as ensuring a wide coverage of sellers and scenarios for using the digital currency of the Bank of Russia.

Suggested Citation

  • Elena D. Dzhaokhadze & Elena V. Sinelnikova-Muryleva, 2025. "Factors and Consequences of the Distribution of retail Central Banks Digital Currencies: Global Experience and Conclusions for the Digital Ruble," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 24(2), pages 685-713.
    • Handle: RePEc:aiy:jnjaer:v:24:y:2025:i:2:p:685-713
    DOI: https://doi.org/10.15826/vestnik.2025.24.2.023
    as

    Download full text from publisher

    File URL: https://journalaer.ru//fileadmin/user_upload/site_15934/2025/11_Dzhaokhadze_Sinelnikova-Muryleva.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.15826/vestnik.2025.24.2.023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sarmiento, Adolfo, 2022. "Seven lessons from the e-Peso pilot plan: The possibility of a Central Bank Digital Currency," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 3(2).
    2. Henry, Christopher S. & Engert, Walter & Sutton-Lalani, Alexandra & Hernandez, Sebastian & Mcvanel, Darcey & Huynh, Kim P., 2023. "Unmet payment needs and a central bank digital currency," Journal of Digital Banking, Henry Stewart Publications, vol. 8(3), pages 242-255, December.
    3. Keister, Todd & Monnet, Cyril, 2022. "Central bank digital currency: Stability and information," Journal of Economic Dynamics and Control, Elsevier, vol. 142(C).
    4. Itamar Drechsler & Alexi Savov & Philipp Schnabl, 2021. "Banking on Deposits: Maturity Transformation without Interest Rate Risk," Journal of Finance, American Finance Association, vol. 76(3), pages 1091-1143, June.
    5. Brandon Tan, 2023. "Central Bank Digital Currency Adoption: A Two-Sided Model," IMF Working Papers 2023/127, International Monetary Fund.
    6. Agur, Itai & Ari, Anil & Dell’Ariccia, Giovanni, 2022. "Designing central bank digital currencies," Journal of Monetary Economics, Elsevier, vol. 125(C), pages 62-79.
    7. Todd Keister, 2022. "How would a Central Bank Digital Currency Affect Financial Stability?," The OFR Blog 22-06, Office of Financial Research, US Department of the Treasury.
    8. Andreas Fagereng & Martin Blomhoff Holm & Benjamin Moll & Gisle Natvik, 2019. "Saving Behavior Across the Wealth Distribution: The Importance of Capital Gains," NBER Working Papers 26588, National Bureau of Economic Research, Inc.
    9. Francesca Carapella & Jean Flemming, 2020. "Central Bank Digital Currency: A Literature Review," FEDS Notes 2020-11-09-1, Board of Governors of the Federal Reserve System (U.S.).
    10. Tan, Brandon Joel, 2024. "Central bank digital currency and financial inclusion," Journal of Macroeconomics, Elsevier, vol. 81(C).
    11. Huifeng Chang & Federico Grinberg & Lucyna Gornicka & Mr. Marcello Miccoli & Brandon Tan, 2023. "Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model," IMF Working Papers 2023/236, International Monetary Fund.
    12. Whited, Toni M. & Wu, Yufeng & Xiao, Kairong, 2023. "Will Central Bank Digital Currency Disintermediate Banks?," IHS Working Paper Series 47, Institute for Advanced Studies.
    13. Brandon Tan, 2023. "Central Bank Digital Currency and Financial Inclusion," IMF Working Papers 2023/069, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tan, Brandon Joel, 2024. "Central bank digital currency and financial inclusion," Journal of Macroeconomics, Elsevier, vol. 81(C).
    2. Abad, Jorge & Nuño, Galo & Thomas, Carlos, 2025. "CBDC and the operational framework of monetary policy," Journal of Monetary Economics, Elsevier, vol. 151(C).
    3. Dirk Niepelt, 2024. "Money and Banking with Reserves and CBDC," Journal of Finance, American Finance Association, vol. 79(4), pages 2505-2552, August.
    4. Assenmacher, Katrin & Bitter, Lea & Ristiniemi, Annukka, 2023. "CBDC and business cycle dynamics in a New Monetarist New Keynesian model," Working Paper Series 2811, European Central Bank.
    5. Toni Ahner & Katrin Assenmacher & Peter Hoffmann & Agnese Leonello & Cyril Monnet & Davide Porcellacchia, 2024. "The Economics of Central Bank Digital Currency," International Journal of Central Banking, International Journal of Central Banking, vol. 20(4), pages 221-274, October.
    6. Lorenzo Burlon & Manuel A. Muñoz & Frank Smets, 2024. "The Optimal Quantity of CBDC in a Bank-Based Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 16(4), pages 172-217, October.
    7. Ozili, Peterson K, 2025. "100 Quotes about central bank digital currencies," MPRA Paper 124263, University Library of Munich, Germany.
    8. Buzuriu Bogdan Cristian, 2024. "Central Bank Digital Currencies and Financial Stability: Literature Review and New Questions," Timisoara Journal of Economics and Business, Sciendo, vol. 17(1), pages 41-64.
    9. Huseyin Oguz Genc & Soichiro Takagi, 2024. "A literature review on the design and implementation of central bank digital currencies," International Journal of Economic Policy Studies, Springer, vol. 18(1), pages 197-225, February.
    10. Magin, Jana Anjali & Neyer, Ulrike & Stempel, Daniel, 2025. "Cash or Cache? Distributional and business cycle implications of CBDC holding limits," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 101(C).
    11. Christoph Wronka, 2023. "Central bank digital currencies (CBDCs) and their potential impact on traditional banking and monetary policy: an initial analysis," Digital Finance, Springer, vol. 5(3), pages 613-641, December.
    12. Georgarakos, Dimitris & Kenny, Geoff & Laeven, Luc & Meyer, Justus, 2025. "Consumer attitudes towards a central bank digital currency," Working Paper Series 3035, European Central Bank.
    13. Makoto WATANABE & Tarishi Matsuoka, 2025. "Banking Crises and Central Bank Digital Currency in a Monetary Economy," CIGS Working Paper Series 25-015E, The Canon Institute for Global Studies.
    14. Jabbar, Abdul & Geebren, Ahmed & Hussain, Zahid & Dani, Samir & Ul-Durar, Shajara, 2023. "Investigating individual privacy within CBDC: A privacy calculus perspective," Research in International Business and Finance, Elsevier, vol. 64(C).
    15. Ahnert, Toni & Hoffmann, Peter & Monnet, Cyril, 2025. "Payments and privacy in the digital economy," Journal of Financial Economics, Elsevier, vol. 169(C).
    16. Sebastian Infante & Kyungmin Kim & Anna Orlik & André F. Silva & Robert J. Tetlow, 2022. "The Macroeconomic Implications of CBDC: A Review of the Literature," Finance and Economics Discussion Series 2022-076, Board of Governors of the Federal Reserve System (U.S.).
    17. Agur, Itai & Ari, Anil & Dell’Ariccia, Giovanni, 2025. "Bank competition and household privacy in a digital payment monopoly," Journal of Financial Economics, Elsevier, vol. 166(C).
    18. Maximilian Grimm, 2024. "The Effect of Monetary Policy on Systemic Bank Funding Stability," ECONtribute Discussion Papers Series 341, University of Bonn and University of Cologne, Germany.
    19. Meng, Yuqun & Wu, Junxian & Tu, Yongqian, 2024. "Central bank digital currency, financial technology level and regional financial stability," International Review of Economics & Finance, Elsevier, vol. 96(PA).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:jnjaer:v:24:y:2025:i:2:p:685-713. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.