The quest for CBDC: indentifying and prioritising the motivations for launching central bank digital currencies in emerging countries

Money is also on the verge of another revolutionary transformation in its long history. The emergence of cryptocurrencies and stablecoins has laid a foundation for the next wave of metamorphosis in money. In response to private digital currencies, reserve banks are considering issuing digital versions of their fiat currencies labelled as Central bank digital currencies (CBDCs). It is vital to reveal the catalysts for global interest in sovereign digital currencies. The current research aims to identify and prioritise the motivations for launching central bank digital currencies in emerging markets. With the help of the literature survey and qualitative expert interviews, the study identified four major and 13 sub-categories of motivations. A fuzzy analytical hierarchal process was employed to determine the relative importance of these motivations and sub-motivations. The study’s outcomes revealed that payment-related motivations are the most significant motivations for launching government-backed digital currencies. In addition, encouraging financial inclusion and payment efficiencies dominate in sub-criterion.