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How Politics Hinder Central Bank Digital Currency (CBDC) Development and What to Do about It

Ozili, Peterson K (2025): How Politics Hinder Central Bank Digital Currency (CBDC) Development and What to Do about It. Forthcoming in:

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Abstract

The motivations and benefits of issuing a central bank digital currency (CBDC) are well known but the challenges faced by central banks in developing and issuing a CBDC have received less attention. To fill this gap, this article provides a succinct understanding of how politics hinder CBDC development. It presents the common arguments used by politicians to stifle CBDC development. It also suggests some ways to reduce political resistance towards CBDC development.

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