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Could migrant families encourage the adoption of CBDCs in developing countries?
[Les familles de migrants pourraient-elles encourager l'adoption de monnaies digitales de banque centrale (CBDC) dans les pays en développement ?]

Author

Listed:
  • Dominique Torre

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Qing Xu

    (LITL - Laboratoire Interdisciplinaire des transitions de Lille - UCL FGES - Université Catholique de Lille - Faculté de gestion, économie et sciences - ICL - Institut Catholique de Lille - UCL - Université catholique de Lille - JUNIA - JUNIA - UCL - Université catholique de Lille)

Abstract

We examine the potential of upcoming Central Bank Digital Currencies (CBDCs) to be used as a means of transferring remittances. In a simple theoretical model, CBDCs compete with traditional channels provided by specialized intermediaries and with digital transfer options already offered by fintech companies. Their success depends on factors such as anonymity, potential conversion into cash, and the network effects generated by CBDC transactions among recipients' families.

Suggested Citation

  • Dominique Torre & Qing Xu, 2025. "Could migrant families encourage the adoption of CBDCs in developing countries? [Les familles de migrants pourraient-elles encourager l'adoption de monnaies digitales de banque centrale (CBDC) dans les pays en développement ?]," Post-Print halshs-05208283, HAL.
    • Handle: RePEc:hal:journl:halshs-05208283
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-05208283v1
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    References listed on IDEAS

    as
    1. Ferrari Minesso, Massimo & Mehl, Arnaud & Stracca, Livio, 2022. "Central bank digital currency in an open economy," Journal of Monetary Economics, Elsevier, vol. 127(C), pages 54-68.
    2. Williamson, Stephen D., 2022. "Central bank digital currency and flight to safety," Journal of Economic Dynamics and Control, Elsevier, vol. 142(C).
    3. Chort, Isabelle & Gubert, Flore & Senne, Jean-Noël, 2012. "Migrant networks as a basis for social control: Remittance incentives among Senegalese in France and Italy," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 858-874.
    4. Anzoategui, Diego & Demirgüç-Kunt, Asli & Martínez Pería, María Soledad, 2014. "Remittances and Financial Inclusion: Evidence from El Salvador," World Development, Elsevier, vol. 54(C), pages 338-349.
    5. M S Eichenbaum & B K Johannsen & S T Rebelo, 2021. "Monetary Policy and the Predictability of Nominal Exchange Rates," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(1), pages 192-228.
    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. Stephen Williamson, 2022. "Central Bank Digital Currency: Welfare and Policy Implications," Journal of Political Economy, University of Chicago Press, vol. 130(11), pages 2829-2861.
    8. Martin Piotrowski, 2006. "‘The Effect of Social Networks at Origin Communities on Migrant Remittances: Evidence from Nang Rong District’," European Journal of Population, Springer;European Association for Population Studies, vol. 22(1), pages 67-94, March.
    9. Batiz-Lazo, Bernardo & González-Correa, Ignacio, 2022. "The Journey of a Remittance in the US-Mexico Corridor: From My Salary to My Family," MPRA Paper 114233, University Library of Munich, Germany.
    10. Mao-Mei Liu, 2013. "Migrant Networks and International Migration: Testing Weak Ties," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1243-1277, August.
    11. Raphael Auer & Rainer Boehme, 2020. "The technology of retail central bank digital currency," BIS Quarterly Review, Bank for International Settlements, March.
    12. Kumhof, Michael & Noone, Clare, 2021. "Central bank digital currencies — Design principles for financial stability," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 553-572.
    13. Magin, Jana Anjali & Neyer, Ulrike & Stempel, Daniel, 2023. "The macroeconomic effects of different CBDC regimes in an economy with a heterogeneous household sector," DICE Discussion Papers 396, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    14. SeyedSoroosh Azizi, 2020. "Impacts of remittances on financial development," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(3), pages 467-477, February.
    15. Ambrosius, Christian & Cuecuecha, Alfredo, 2016. "Remittances and the Use of Formal and Informal Financial Services," World Development, Elsevier, vol. 77(C), pages 80-98.
    16. Magin, Jana & Neyer, Ulrike & Stempel, Daniel, 2023. "The Macroeconomic Effects of Different CBDC Regimes in an Economy with a Heterogeneous Household Sector," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277656, Verein für Socialpolitik / German Economic Association.
    17. Chiu, Jonathan & Keister, Todd, 2022. "The economics of digital currencies: Progress and open questions," Journal of Economic Dynamics and Control, Elsevier, vol. 142(C).
    18. Ali, Ubaid & Mughal, Mazhar & Ayaz, Muhammad & Ahmed, Junaid, 2024. "Migrant remittances and the adoption of information and communication technology," Information Economics and Policy, Elsevier, vol. 68(C).
    19. 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.
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    Cited by:

    1. Jeremy Srouji & Dominique Torre & Qing Xu, 2025. "Should BRICS Members Adopt a Wholesale Digital Payment System?," GREDEG Working Papers 2025-48, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

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    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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