Currency digitalization: The supply, demand, and infrastructure aspects of china's central bank digital currency

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dc.citation.issuePart B
dc.citation.volume85
dc.contributor.authorZeng L
dc.contributor.authorYoung MR
dc.contributor.authorHao W
dc.date.accessioned2025-08-13T03:04:39Z
dc.date.available2025-08-13T03:04:39Z
dc.date.issued2025-11
dc.description.abstractThis paper studies how digitalization affects the adoption of China's central bank digital currency (e-CNY). Utilizing provincial-level panel data from 2011 to 2021, we examine the impacts of "Breadth of Digitalization Coverage" and "Digitalization Level" on the supply and demand dynamics of e-CNY. Our findings show that digitalization reduces both the supply and demand of physical currency. This decreasing reliance on physical currency implies that digitalization has paved the way for adopting e-CNY. We further investigate the infrastructural factors that support digitalization progression and e-CNY's implementation. Our results suggest that the transition from physical to digital currency is jointly driven by wallet digitalization (enabled by smartphones) and payment scenario digitalization (supported by e-commerce). Our result findings provide implications to both China and other countries developing CBDC initiatives.
dc.description.confidentialfalse
dc.edition.editionNovember 2025
dc.identifier.citationZeng L, Young MR, Hao W. (2025). Currency digitalization: The supply, demand, and infrastructure aspects of china's central bank digital currency. Finance Research Letters. 85. Part B.
dc.identifier.doi10.1016/j.frl.2025.108001
dc.identifier.elements-typejournal-article
dc.identifier.issn1544-6123
dc.identifier.number108001
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/73348
dc.languageEnglish
dc.publisherElsevier B.V.
dc.publisher.urihttps://www.sciencedirect.com/science/article/pii/S1544612325012590
dc.relation.isPartOfFinance Research Letters
dc.rights(c) 2025 The Author/s
dc.rightsCC BY 4.0
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectCentral bank digital currency
dc.subjecte-CNY
dc.subjectCurrency digitalization
dc.subjectDigital wallets
dc.subjectDigital payment scenarios
dc.subjectCash substitution
dc.titleCurrency digitalization: The supply, demand, and infrastructure aspects of china's central bank digital currency
dc.typeJournal article
pubs.elements-id502642
pubs.organisational-groupOther
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