Central bank digital currencies: An assessment of their adoption in Latin America

Author Information

Noelia Camaria

Date of Publication

1-1-2023 12:00 AM

Security Theme

Cybersecurity

Keywords

Digital Currencies, State Banking, Crime, Regulation, Cybersecurity

Description

This document focuses on identifying factors affecting the implementation of a Central Bank digital currency (CBDC) in Latin American countries. Main conclusions apply to developing countries in general. The adoption of a CBDC (non-universal) for the interbank and wholesale payment system would lead to a relatively minor level of disruption in the economy. In this case, although Latin America could benefit more than developed countries from the implementation of a CBDC, since the gains in efficiency are potentially greater, the implementation costs is an important issue. The implementation of a universal and unidentified CBDC offers a similar alternative to cash, which is widely used in Latin America compared to developed countries.

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Jan 1st, 12:00 AM

Central bank digital currencies: An assessment of their adoption in Latin America

This document focuses on identifying factors affecting the implementation of a Central Bank digital currency (CBDC) in Latin American countries. Main conclusions apply to developing countries in general. The adoption of a CBDC (non-universal) for the interbank and wholesale payment system would lead to a relatively minor level of disruption in the economy. In this case, although Latin America could benefit more than developed countries from the implementation of a CBDC, since the gains in efficiency are potentially greater, the implementation costs is an important issue. The implementation of a universal and unidentified CBDC offers a similar alternative to cash, which is widely used in Latin America compared to developed countries.