Kochergin D.A. GLOBAL EXPERIENCE IN IMPLEMENTING CENTRAL BANKS DIGITAL CURRENCIES FOR RETAIL PAYMENTS IN EMERGING MARKETS AND DEVELOPING COUNTRIES

The Bulletin of the Institute of Economics of the Russian Academy of Sciences № 5/2024. Finance.

Dmitry A. Kochergin

Dr. Sci. (Econ.), Assistant Professor, Chief Researcher, Institute of Economics of the Russian Academy of Sciences, Moscow, Russia

ORCID: 0000-0002-7046-1967

GLOBAL EXPERIENCE IN IMPLEMENTING CENTRAL BANKS DIGITAL CURRENCIES FOR RETAIL PAYMENTS IN EMERGING MARKETS AND DEVELOPING COUNTRIES

130-171

1.85 MB

Full text

Abstract

The article is devoted to the definition of current trends in the development of retail payments, the study of the motives for the introduction of digital currencies, the architecture and design features of retail CBDC systems in emerging markets and developing countries (EMDCs), as well as possible risks. Proposals have been formulated to improve the digital ruble project. As a result of the study, conclusions are drawn about the global trend of more and more expanding use of non-cash payment instruments and the growing competition between private payment service providers and the government. The key motives for the introduction of retail CBDCs are: expanding financial accessibility, improving the security of payments, offering digital money of universal use, etc. Having analyzed the experience of implementing rCBDC systems in developing economies we conclude that these countries use a two-tier architecture, hybrid infrastructure and different types of digital wallets. The main difficulties facing the adoption of rCBDCs in EMDCs include risks of cyber security, bank disintermediation, low adoption, etc. For widespread the adoption of rCBDCs in EMDCs, including in Russia, it is necessary to: eliminate fees for CBDC payments; expand storage limits and transaction amounts; support anonymous low-denomination payments; encourage the use of digital currency in government payments, etc.

Keywords: non-cash payments, central bank digital currencies (CBDCs), retail CBDCs, CBDC systems, digital wallets, disintermediation of banks, financial inclusion, monetary regulation, digital rouble.

JEL: E42, E50, E58

EDN: XGGDXK

DOI: https://doi.org/10.52180/2073-6487_ 2024_5_130_171

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Manuscript submission date: 27.06.2024

For citation:

Kochergin D.A. Global experience in implementing central banks digital currencies for retail payments in emerging markets and developing countries // Vestnik Instituta Ekonomiki Rossiyskoy Akademii Nauk. 2024. № 5. Pp. 130-171. (In Russ.). https://doi.org/10.52180/2073-6487_ 2024_5_130_171 EDN: XGGDXK

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