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Disruptive Impacts of Central Bank Digital Currencies on the Traditional Financial System: A Regulatory Framework Perspective
- 1 The University of Sydney, Sydney, Australia
- 2 CITIC Bank Co. Ltd, Shenzhen, China
- 3 Kunming University, Yunnan, China
* Author to whom correspondence should be addressed.
Abstract
Central bank digital currency (CBDC) is a groundbreaking innovation that provides a digital currency issued by the state to replace cash and commercial bank deposits, and is gradually changing the operating mode of the traditional financial system. This paper explores the disruptive impact of CBDC on financial institutions, monetary policy and payment systems through theoretical analysis and empirical data. The study pointed out that CBDC has the potential to improve financial inclusion, reduce transaction costs and enhance the efficiency of monetary policy transmission. However, the challenges it has caused, such as financial disintermediation, systemic risks and privacy issues, urgently need to establish a strong regulatory framework to address them. Through data-driven insights and case studies, this paper provides a comprehensive perspective on how to find a balance between innovation and financial stability.
Keywords
central bank digital currencies, financial disruption, regulatory framework, monetary policy, financial inclusion
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Cite this article
Zhou,L.;Hu,B.;Zheng,L. (2025). Disruptive Impacts of Central Bank Digital Currencies on the Traditional Financial System: A Regulatory Framework Perspective. Journal of Fintech and Business Analysis,2(1),29-33.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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Journal：Journal of Fintech and Business Analysis
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