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Analysis of the Potential Impact of Central Bank Digital Currency (CBDC) on Banking in Indonesia

Gunawan, Risma, Yatimi, Muh. Asrul and Sartika, Farahiyah ORCID: https://orcid.org/0000-0002-2849-8811 (2024) Analysis of the Potential Impact of Central Bank Digital Currency (CBDC) on Banking in Indonesia. International Journal of Business and Applied Economics (IJBAE), 3 (5). pp. 881-894. ISSN E-ISSN: 2963-6124

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Abstract

This research aims to analyze the potential impact of implementing Central Bank Digital Currency (CBDC) on banking stability in Indonesia and identify factors that influence economic actors in using CBDC. This research used descriptive qualitative methods with literature studies. The data sources for research are bibliographic or come from various types of literature, including books, journals, articles, newspapers, modules, personal documents, etc. The research results show that implementing CBDC can reduce the number of deposits in banks, increase competition, and change banking business models. However, CBDCs can also improve financial inclusion and payment system efficiency. Factors that influence the use of CBDC include the level of trust, security, cost, and public literacy and education. The implication of this research is to enrich financial literature by introducing a new concept regarding digital money issued by central banks. In addition, the research results can be used to design risk mitigation strategies that may arise due to switching from cash to digital money.

Item Type: Journal Article
Keywords: Central Bank Digital Currency (CBDC), Potential, Banking Stability
Subjects: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment
Divisions: Faculty of Economics > Department of Management
Depositing User: Farahiyah Sartika
Date Deposited: 11 Dec 2024 08:34

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