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Using Central Bank Digital Currency to Achieve the Sustainable Development Goals

In: Digital Transformation, Strategic Resilience, Cyber Security and Risk Management

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  • Peterson K. Ozili

Abstract

This chapter examines the role of the central bank digital currency (CBDC) in achieving the United Nations’ sustainable development goals (SDGs). Digitalisation is transforming the sustainable development landscape, and there is a need for central banks to play a major role in digital transformation for sustainable development. This topic is important to policymakers interested in how central bank innovation can help support SDGs’ realisation. This study is also relevant to researchers researching how a CBDC can be used to achieve SDGs. The author argued that a CBDC could unlock financing for each SDG, provide convenient access to capital and increase payment efficiency. CBDC can also increase the speed of transaction chains and provide greater capital efficiency for investment in sustainable development activities and projects. A CBDC can support realising the United Nations’ SDGs. Policymakers should ensure that the CBDC in their respective countries is designed to incorporate features that consider sustainable development concerns for attaining the United Nations’ SDGs. There has yet to be an attempt to assess how a CBDC can contribute to realising the United Nations’ SDGs. The literature needs to examine the opportunities CBDC presents for achieving SDGs.

Suggested Citation

  • Peterson K. Ozili, 2023. "Using Central Bank Digital Currency to Achieve the Sustainable Development Goals," Contemporary Studies in Economic and Financial Analysis, in: Digital Transformation, Strategic Resilience, Cyber Security and Risk Management, volume 111, pages 143-153, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:csefzz:s1569-37592023000111c008
    DOI: 10.1108/S1569-37592023000111C008
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    References listed on IDEAS

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    1. Peterson K. Ozili, 2022. "Circular Economy and Central Bank Digital Currency," Circular Economy and Sustainability, Springer, vol. 2(4), pages 1501-1516, December.
    2. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    3. Peterson K. Ozili, 2022. "Central bank digital currency research around the world: a review of literature," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 26(2), pages 215-226, January.
    4. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.
    5. Peterson K. Ozili & Paul Terhemba Iorember, 2024. "Financial stability and sustainable development," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2620-2646, July.
    6. Jeffrey D. Sachs & Guido Schmidt-Traub & Mariana Mazzucato & Dirk Messner & Nebojsa Nakicenovic & Johan Rockström, 2019. "Six Transformations to achieve the Sustainable Development Goals," Nature Sustainability, Nature, vol. 2(9), pages 805-814, September.
    7. Xiang Deng & Zhi Huang & Xiang Cheng, 2019. "FinTech and Sustainable Development: Evidence from China Based on P2P Data," Sustainability, MDPI, vol. 11(22), pages 1-19, November.
    8. Ozili Peterson K., 2021. "Digital Finance, Green Finance and Social Finance: Is there a Link?," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 17(1), pages 1-7, March.
    9. Peterson K. Ozili, 2022. "Central Bank Digital Currency in Nigeria: Opportunities and Risks," Contemporary Studies in Economic and Financial Analysis, in: The New Digital Era: Digitalisation, Emerging Risks and Opportunities, volume 109, pages 125-133, Emerald Group Publishing Limited.
    10. Peterson K. Ozili, 2022. "Financial inclusion and sustainable development: an empirical association," Journal of Money and Business, Emerald Group Publishing Limited, vol. 2(2), pages 186-198, September.
    11. Michael D. Bordo & Andrew T. Levin, 2017. "Central Bank Digital Currency and the Future of Monetary Policy," NBER Working Papers 23711, National Bureau of Economic Research, Inc.
    12. Ricardo Vinuesa & Hossein Azizpour & Iolanda Leite & Madeline Balaam & Virginia Dignum & Sami Domisch & Anna Felländer & Simone Daniela Langhans & Max Tegmark & Francesco Fuso Nerini, 2020. "The role of artificial intelligence in achieving the Sustainable Development Goals," Nature Communications, Nature, vol. 11(1), pages 1-10, December.
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    Cited by:

    1. Xin, Baogui & Jiang, Kai & Santibanez Gonzalez, Ernesto D.R., 2024. "The coevolution effect of central bank digital currency and green bonds on the net-zero economy," Energy Economics, Elsevier, vol. 134(C).
    2. Medina Ayta Mohammed & Carmen De-Pablos-Heredero & José Luis Montes Botella, 2023. "Exploring the Factors Affecting Countries’ Adoption of Blockchain-Enabled Central Bank Digital Currencies," Future Internet, MDPI, vol. 15(10), pages 1-14, September.
    3. Ozili, Peterson K, 2024. "Thinking Fast and Slow about Central Bank Digital Currencies," MPRA Paper 120774, University Library of Munich, Germany.

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    More about this item

    Keywords

    Central bank digital currency; CBDC; sustainable development; sustainable development goals; United Nations; SDGs; Q01;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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