National bank digital currencies: development stages and use in cross-border payments

Abstract

With the growing use and popularity of digital currencies, it has become crucial to study the potential advantages and disadvantages these forms of currency bring to the global economy. The aim of this study is to identify the key theoretical principles governing the feasibility of national bank digital currencies and to conduct a comparative analysis of their development and use in different countries today. The methodology is based on a comparative approach, including systemic and comparative analysis and data collection. The study’s data base included reports from national central banks, data from the official websites of the World Bank, the Bank for International Settlements, and the National Bank of Russia, as well as expert assessments from international financial organizations. Central bank digital currencies provide low-cost, near-instant settlements for both domestic and international payments, reducing risks and improving user experience. This helps ensure the rapid sending and receiving of payments in local currencies by both parties in a transaction, while providing a platform for further innovation. More than 130 countries are involved in developing their own digital currencies by 2025, at various stages, from research to implementation. The Bank of Russia’s “Digital Ruble” project could help reduce dependence on the US dollar in international settlements. Experience with the digital yuan will be useful in mitigating risks associated with the digital ruble’s implementation. Furthermore, the use of cutting-edge technologies to improve the economy can also play a significant role in stimulating economic growth and improving financial systems. Regulation of digital currencies and the implementation of cutting-edge technologies have the potential to transform and enrich the economy.

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