Title: Central bank digital currencies and institutional systems: design choices based on institutional characteristics

Authors: Amir Sayyid; Anna Grosman; Anton Klarin

Addresses: Institute for Innovation and Entrepreneurship, Loughborough University London, Loughborough, England, UK ' Institute for Innovation and Entrepreneurship, Loughborough University London, Loughborough, England, UK ' School of Management and Marketing, Curtin University, Bentley, Perth, Australia

Abstract: Central Bank Digital Currency (CBDC) is a state-issued digital currency. Most CBDCs are expected to be based on blockchain technology, delivering programmable digital money that is more efficient than current fiat money systems and streamlining international business transactions. This study offers a typology of (i) emerging market-driven tech-controlled, (ii) developed market-driven, (iii) entrepreneurial (innovation-centric), (iv) market-driven fintech-freedom, (v) emerging market mixed economy, (vi) emerging tech-freedom, (vii) interventionist (regulatory-intensive), and (viii) developed protectionist fintech-freedom states based on political, social, and economic dimensions for a better understanding of CBDC design choices. Factors such as the rule of law, international trade, CBDC development progress, GDP per capita, citizen trust and freedom (including digital freedom), and financial literacy (including internet connectivity and financial freedom) influence how CBDCs should be designed, using the USA and China as examples. This is the first study to link CBDCs to institutional innovation across a variety of institutional systems.

Keywords: Central Bank Digital Currency; blockchain technology; digital currency adoption; cryptocurrency; distributed ledger technology; retail CBDC; wholesale CBDC; stablecoin; financial inclusion; programmable money; institutional innovation; fintech; financial technology; digital token; bitcoin; e-CNY; tokenisation; digital ID.

DOI: 10.1504/EJIM.2025.148801

European Journal of International Management, 2025 Vol.27 No.2, pp.245 - 271

Received: 17 Mar 2023
Accepted: 08 May 2024
Published online: 25 Sep 2025 *

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