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

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  • Ozili, Peterson K

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

  • Ozili, Peterson K, 2025. "How Politics Hinder Central Bank Digital Currency (CBDC) Development and What to Do about It," MPRA Paper 125034, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:125034
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    File URL: https://mpra.ub.uni-muenchen.de/125034/1/MPRA_paper_125034.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • 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
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other

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