The Effects of Central Bank Digital Currencies (CBDCs) on Commercial Banking Models in Emerging Economies

Abstract

This research explores the anticipated effects of the introduction of Central Bank Digital Currencies (CBDCs) on the business models and profitability of commercial banks in select emerging economies. Through a combination of literature review, policy analysis, and expert interviews, the study investigates potential disruptions to deposit bases, lending activities, and payment systems. The findings will offer critical insights for policymakers, central banks, and commercial banks navigating the transition to a digitalized financial infrastructure and its implications for financial stability and inclusion.