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How Politics Hinder Central Bank Digital Currency (CBDC) Development and What to Do about It

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  • Peterson K. Ozili

    (Central Bank of Nigeria, Abuja, Nigeria)

Abstract

The motivations and benefits of issuing a central bank digital currency (CBDC) are well known but the challenges faced by central banks in developing and issuing a CBDC have received less attention. To fill this gap, this article provides a succinct understanding of how politics hinder CBDC development. It presents the common arguments used by politicians to stifle CBDC development. It also suggests some ways to reduce political resistance towards CBDC development.

Suggested Citation

  • Peterson K. Ozili, 2025. "How Politics Hinder Central Bank Digital Currency (CBDC) Development and What to Do about It," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 14(1), pages 59-74.
    • Handle: RePEc:cbk:journl:v:14:y:2025:i:1:p:59-74
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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