Title: A primer to central bank digital currency: a payments ecosystem disruptor

Authors: Nithiyananthan Suppiah; Humayun Zafar

Addresses: Kennesaw State University, 1000 Chastain Road, Kennesaw, GA 30144, USA ' Kennesaw State University, 1000 Chastain Road, Kennesaw, GA 30144, USA

Abstract: The digital payments landscape has evolved rapidly with the wide adoption of FinTech. The challenges linked to the current payment environment have generated a necessity for a more productive, safe, and economical payment structure. Conventional price structures consist of intermediaries like issuers, networks, and payment processors, ensuing extended transaction costs for merchants and shoppers. Moreover, the ongoing system is at risk of security threats and payment card fraud, which produces tremendous economic losses for merchants and monetary establishments. Although there is a growing demand for a charging device that is faster, cheaper, and more steady, the capacity of central bank digital currencies (CBDC) to supply those goals still needs to be determined. Before realising the concept, hurdles, including scalability, interoperability, and jurisdictional inconsistencies, must be addressed. Recognising the results of the proposed new payment method requires further research.

Keywords: digital payments; virtual currency; FinTech; conventional price structures; payment card fraud; central bank digital currencies; CBDCs; scalability; interoperability; jurisdictional inconsistencies.

DOI: 10.1504/IJBC.2023.138371

International Journal of Blockchains and Cryptocurrencies, 2023 Vol.4 No.4, pp.273 - 287

Received: 03 May 2023
Accepted: 08 Aug 2023
Published online: 01 May 2024 *

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