GOING DIGITAL RUPIAH: SOME CONSIDERATIONS FROM SOVEREIGNTY AND CYBERSECURITY PERSPECTIVES

Asset-backed securities (ABS), 147 Asset-backed tokenization, 153 Asset-backed tokens (ABTs), 6, 146, 150-154 background, 148-150 benefits of tokenization, 154-155 capital requirements, 171-172 case studies, 156-161 challenges, 155-156 consultation outcomes, 173-176 general principles, 168-171 regulatory issues, 168-176 risks of permissionless DLTS and smart contracts, 161-168 Asset-pricing relationships comparison of cryptocurrency and equity market factors, 100-103 cryptocurrency pricing by equity and crypto factors, 104-108 cryptocurrency pricing by global and regional factors, 108-109 data, 98-100 Association of Proprietary Traders (APT), 174 Auto loans, 154 Automated teller machines (ATMs), 17

This paper aims to examine the revolutionary impact of digital technologies—specifically blockchain systems and central bank digital currencies (CBDCs)—on modern financial architecture and the processes of global economic integration. These technologies are rapidly transforming the structure and functioning of both national and international financial systems, placing states, markets, and institutions before new opportunities and challenges within the contemporary economic landscape. Blockchain technology, as one of the core components of Industry 4.0, is widely applied in areas such as peer-to-peer (P2P) transactions, trade finance, smart contracts, digital asset tokenization, and data protection. This research highlights its influence on the functional structure of financial markets, particularly in the context of international payments, transaction transparency, and cybersecurity. Simultaneously, the study explores the evolving role of traditional financial institutions—especially central banks—in the digital age. In Georgia, the emergence of blockchain-based startups in areas like payments, digital contract management, and data security is already evident, positioning this technology as a potential driver of economic transformation in the country. CBDCs, as digital currencies issued by central banks and directed both toward the general public (retail CBDC) and financial institutions (wholesale CBDC), differ from other digital innovations by serving as a strategic instrument that bridges monetary policy, sovereign currency systems, and international financial relations. In addition to blockchain, this study analyzes the potential role of CBDCs in global economic integration—specifically how they support the optimization of cross-border payment systems, increase financial inclusion, and strengthen digital sovereignty, particularly for developing economies. Furthermore, it addresses the geopolitical and regulatory complexities that accompany the global implementation of these technologies. Methodologically, the research employs a mixed-methods approach. The impact of blockchain is evaluated using financial market indicators from Yahoo Finance and Bloomberg, as well as global digital governance indices. The analysis of CBDCs relies on documentary review, including reports from international organizations (e.g., IMF, BIS, World Bank), academic literature, and regulatory frameworks developed by central authorities. The paper is structured as follows: the first section discusses the theoretical and practical aspects of blockchain technology; the second section focuses on the technological and policy foundations of CBDCs; the third section examines their impact on areas such as international trade, financial policy, monetary independence, and cybersecurity. Finally, the case of Georgia is presented as an example of the combined influence of blockchain and CBDCs in an emerging economy. The study’s main conclusion demonstrates that the integration of blockchain and CBDCs is transforming the rules of the game in financial markets. The technological architecture is shifting to a new digital paradigm, where fast, low-cost, and secure transactions are replacing traditional financial intermediaries. Simultaneously, the role of central banks is being strengthened in monetary and credit policy, while their responsibilities regarding cybersecurity and data protection are also expanding. Successful implementation of CBDCs will significantly enhance both domestic financial stability and participation in global monetary relations—provided that international cooperation, legal frameworks, and technical standardization are effectively developed. Similarly, the application of blockchain technology—particularly in Georgia—requires a strategic vision and infrastructure support to harness its potential not only for improving financial products but also for fostering economic development and integration into the global system. Therefore, this paper confirms that the digital technology revolution—namely blockchain and CBDCs—represents not only a technological shift but a profound structural transformation in the global financial architecture, requiring integrated policy approaches and coordinated actions at both national and international levels. Keywords: Blockchain technologies, digital currency, central bank, financial markets, economic integration, Georgian economy, CBDC, international trade, monetary policy.

The quantity of electronic currency in circulation within the community experienced a substantial increase between 2017 and 2022. However, the quantity of electronic currency in circulation in 2021 has declined compared to 2020 and 2022. Furthermore, the emergence of central bank digital currency (CBDC) as a digital currency has problems that cannot be avoided; these problems arise from policies or regulations and understanding of the public and business people and are related to the security of digital currency users. The Bank of Indonesia deems it imperative to address this by implementing suitable policies. The policy encompasses digital payments and financial services, including Central Bank Digital Currency (CBDC). Central banks worldwide are encouraged to develop Central Bank Digital Currency (CBDC) to enhance monetary policy effectiveness. The objective is to guarantee financial stability and enhance the effectiveness and resilience of the payment system. This study aims to examine the concept of Central Bank Digital Currency (CBDC) as a novel electronic payment tool for social entrepreneurs. The research approach employed in this study was descriptive qualitative with data forecasting. The findings of this study indicate that Central Bank Digital Currency (CBDC) has the potential to be utilized as a payment instrument by social entrepreneurs.

PurposeThe purpose of this study is to describe the present taxonomy of money, summarize potential central bank digital currency (CBDC) regimes that central banks worldwide could adopt and explore the implications of the introduction of each of these CDBC regimes for money laundering through the lens of the regulatory dialectic theory.Design/methodology/approachThe methodology used in the analysis of significant recent events regarding the progress of central banks in establishing a CBDC and the implications for money laundering under a CBDC regime. This paper also reviews the literature regarding the Regulatory Dialectic to highlight potential innovative responses of money launderers to circumvent the controls generated through the implementation of a CBDC.FindingsThis study examines the impact of Kane’s regulatory dialectic paradigm on the feasibility of money laundering under a CBDC regime and identifies potential avenues that would be available for those seeking to launder money, based on the form a CBDC would take.Research limitations/implicationsThis paper is unable as of yet to empirically evaluate anti-money laundering (AML) tactics under a CBDC regime as it has not yet been fully implemented.Practical implicationsMany central banks worldwide are evaluating the structure of and introduction of a CBDC. There are a number of forms that a CBDC could take, each of which has implications for individual privacy and for entities involved in AML efforts within financial institutions and the regulatory community. The paper has implications for AML experts who are considering how AML procedures would change under a CBDC regime.Social implicationsThe regulatory dialectic predicts that regulatory response reactive, rather than proactive when it comes to socially undesirable phenomena. As central banks and governments seek to divert economic activity away from the laundering of the proceeds of illicit activity, there are tradeoffs in terms of a loss of privacy. The regulatory dialectic predicts a corresponding innovative response of those who wish to undermine the controls generated through the establishment of a CBDC.Originality/valueTo the authors’ knowledge, this is the first paper to explore the impact of a potential CBDC on money laundering and the potential innovative circumventions within the paradigm of the Regulatory Dialectic.

The article is devoted to the study of prospects for digital currency issue by central banks as a new form of central bank money and to the potential of their influence on monetary and credit system. The aim of the article is to interpret and classify central bank digital currencies, to identify key characteristics of digital currencies and possible models of their issue, as well as to define the main directions of influence of digital currencies on the monetary and credit and payment systems. The scientific novelty of the article is in the systematization and comparison of different ideas about the implementation of sovereign digital currencies considering the use of distributed registry technologies. The study analyzed the projects of central banks on the issue of digital currencies and identified their features. Possible directions of influence of central bank digital currencies on the monetary and credit policy of the Central Bank and the activities of credit institutions were determined. It revealed that central bank digital currencies can be considered as a new form of money of the Central Bank, which can be issued to be used both in retail and in wholesale payments. Digital currencies may differ in some characteristics. The key ones are: a way to integrate into the monetary and credit system; emission technology; currency storage method; mechanism of mutual settlements and anonymity level. The study showed that the main incentives for introducing digital currencies are the possibility to provide an alternative and universally accessible legal means of payment, as well as to provide faster, more transparent and cheaper in-country and cross-border payments. The influence of digital currencies on the monetary and credit system and the monetary and credit policy of the Central Bank will largely depend on the scenario of their system integration. If cash is simply replaced in circulation by digital currencies, the effect on the Central Bank monetary and credit system and policy will not be significant. However, if central bank digital currencies are issued as an addition to cash, or are in parallel circulation, they can strengthen the transmission mechanism of the monetary and credit policy and increase the centralization of assets on the Central Bank balance sheet, as well as reduce the funding provided by credit institutions.

Purpose: The purpose of this article was to analyze effect of central bank digital currencies (CBDCs) on the global financial system's stability in Kenya. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The introduction of central bank digital currencies (CBDCs) in Kenya could enhance financial inclusion and reduce transaction costs, particularly for the unbanked. However, risks such as cybersecurity threats, financial disintermediation, and impacts on traditional banking systems exist. CBDCs could also give central banks more control over monetary policy. While offering benefits, their success depends on strong regulatory frameworks, technological infrastructure, and addressing privacy concerns. Careful implementation and international coordination are essential for ensuring financial stability in Kenya's ecosystem. Unique Contribution to Theory, Practice and Policy: Financial intermediation theory, theoretical framework of financial stability & network effects theory may be used to anchor future studies on the effect of central bank digital currencies (CBDCs) on the global financial system's stability in Kenya. Central banks should adopt a cautious and incremental approach to CBDC implementation, as recommended. Governments and central banks worldwide must engage in international dialogues to ensure coordinated approaches to CBDC adoption.

In discussing the future of money and financial systems, central bank digital currencies (CBDCs) are now dominating the discourse; hence, understanding the perspectives of regulators, particularly central banks, and monetary authorities, is paramount in comprehending the global landscape of CBDC adoption and regulation. This chapter presents a systematic literature review of official publications published by central banks worldwide by synthesizing regulators' perspectives on CBDCs across different jurisdictions. This chapter synthesizes vital themes, trends, and insights about CBDCs by comprehensively analyzing central banks' publications. The authors find that official publications on CBDC by central banks are still at an early stage, highlighting the need for further research on perspectives by central banks about CBDC. Although many central banks indicated that they are undertaking CBDC research, their research output and public data are challenging to find.

This study employs a systematic review of the literature to critically analyze the privacy implications of central bank digital currencies (CBDCs). Against the backdrop of a global digital revolution spurred by financial crises and the rise of cryptocurrencies, the emergence of CBDCs has garnered substantial attention from central banks worldwide. The study’s main objective is to fill a significant gap in the literature by providing an evidence-based assessment of the privacy issues of CBDCs. Through a meticulous analysis of the 46 selected papers, the study identifies key findings, including diverse perspectives on CBDC models, aspects and gaps in CBDC research, and various privacy concerns, such as extensive data collection in the direct CBDC model, challenges related to central bank data retention in the hybrid CBDC model, and increased operational complexity in the intermediated CBDC approach associated with CBDC implementation. The critical analysis points toward the urgent need for more extensive research into the privacy and security aspects of CBDCs to ensure user protection and trust. The findings contribute valuable insights for policymakers, regulators, and stakeholders in shaping the responsible creation and use of CBDCs.

The emergence of Central Bank Digital Currencies (CBDCs) has provoked significant interest among policymakers, economists, and financial institutions worldwide. As digital transformation reshapes the global economy, CBDCs offer a potential pathway for central banks to modernize monetary systems, enhance financial inclusion, and improve payment efficiency. This article explores the feasibility of CBDCs becoming the primary form of money in a country, examining their potential benefits, challenges, and implications for financial stability, monetary policy, and economic sovereignty. Drawing on empirical research, including stability metrics such as Z-scores, the findings suggest that CBDCs can coexist with existing financial systems without causing significant disruption. However, their successful implementation requires robust technological infrastructure, adaptive regulatory frameworks, and widespread public trust. The discussion highlights opportunities for CBDCs to enhance financial inclusion, streamline cross-border payments, and provide central banks with innovative policy tools. At the same time, challenges such as cybersecurity risks, potential disintermediation of commercial banks, and privacy concerns must be carefully addressed. Policymakers must adopt tailored strategies to balance innovation with stability, ensuring that CBDCs serve as a secure, efficient, and inclusive monetary tool. This article concludes with recommendations for phased implementation, public-private collaboration, and global coordination to maximize the benefits of CBDCs while minimizing risks. By addressing these critical factors, CBDCs have the potential to revolutionize the financial landscape, offering a modern alternative to traditional cash and commercial bank deposits while supporting long-term economic resilience and growth.

Central bank digital currencies (CBDCs) are been designed a ‘new normal’ for the world of finance in which payments (digital currency) can be made directly from one party to another without financial intermediaries regardless macroeconomic links. Digital currency has ushered the world of finance into uncharted waters as central banks and international institutions crumble to fine their feet’s in a fast moving stream of decentralised finance (DeFi) and global stablecoins. As central banks embark on the CBDCs journey, there are number of questions which must be address: What problems are CBDC’s expected to solve? How do current design thinking resolve these problems in Africa? Are there alternatives to CBDCs in Africa ? Broadly, CBDCs are expected to resolve inefficient and costly domestic and cross-border payments and settlement, ensure price stability and financial stability, retain monetary policy independence and digital de-dollarization. A qualitative descriptive design has been adopted in this study.Findings. Central bank digital currencies (CBDCs) well-designed in a new multilateral fair and just international monetary architecture has the potential to ensure price stability and financial stability in both advanced and developing economies in general, but more importantly would enable developing countries to regain some among of monetary policy independence. However, under the CBDCs design thinking within the framework of existing international monetary and financial architecture, no economy in Africa can withstand the powers of BigFintech, DeFi, global stablecoins and foreign sovereign digital currencies. This paper concludes that African countries must decide whether to cede their sovereign power to an independent monetary authority with single digital currency to manage under their control or cede their economic and financial destiny to unaccountable foreign BigFintech and/or foreign sovereign CBDCs in form of digital dollarization. Keywords: digital currency, CBDCs, digital dollarization, international monetary system, Africa DOI: 10.7176/RJFA/12-18-03 Publication date: September 30 th 2021

Central Bank Digital Currency (CBDC) is a digital version of domestic currency with a unit of account equivalent to its domestic currency. Blockchain or Distributed Ledger technology (DLT) can be used to implement CBDC to execute and settle peer-to-peer transactions. With the emergence of private money, such as cryptocurrencies and stablecoins, and the growing use of digital payments to lessen the global pandemic spread, CBDC is an active research area among central banks worldwide. Many central banks started their CBDC projects by building DLT proofs of concept (PoCs) to replicate wholesale payment systems and expand their investigation into other use cases, such as delivery versus Payment (DvP) and cross-border remittance. Many large economies like the United States have projects exploring CBDC. The People’s Bank of China (PBoC), China Central Bank, has already started a pilot testing of their digital retail currency. This paper discusses the application of blockchain for CBDC by presenting CBDC projects by central banks. Moreover, this paper analyses issues, identify challenges and discusses future works in this rapidly evolving field.

Central Bank Digital Currency (CBDC) is a digital version of domestic currency with the unit of account equivalent to its domestic currency. Blockchain can be used to implement CBDC to execute and settle peer-to-peer transactions. With the emergence of private money such as cryptocurrencies and stable coins and the growing use of digital payments to lessen the global pandemic spread, CBDC is an active research area among the central banks worldwide. Many central banks started their CBDC projects by building proofs of concept (PoCs) to replicate wholesale payment systems and expand their investigation into other use cases such as delivery versus Payment (DvP) and cross-border remittance. PBoC, China Central Bank, has already started a pilot testing of their digital currency. This paper discusses the application of blockchain for CBDC by presenting CBDC projects by central banks. Moreover, this paper analyses issues, identify challenges, and discusses future works in this rapidly evolving field.

The banking sector has been greatly impacted by the technological outburst of the twenty-first century. Bitcoin, the first crypto asset created on block chain technology, has firmly established itself in the financial sector since its introduction in 2009. The market capitalization of uncontrolled crypto assets has grown at an unprecedented rate, posing a threat to the banking industry and the economy. Illegal activities such as terrorist funding and money laundering find refuge in the unregulated world of crypto assets. To keep up with the demands of the computer-savvy Generation Next, banks worldwide have adopted various technologies and improved their service standards. However, central banks continue to follow the traditional system of issuing hard currency bank notes, which do not match the aspirations of most end users. As a result, Central Banks worldwide are currently brainstorming the introduction of a Central Bank Digital Currency (CBDC). This study aims to explore the theoretical aspect, feasibility, and status of CBDC. Four Central Banks have already issued CBDC, while others are in the process of doing so. Block chain under Distributed Ledger Technology is the most suitable and widely accepted platform for issuing CBDC. Robust computer security measures must be established to prevent hacking and ensure monetary stability for CBDC. During the initial stages of CBDC implementation, hard currency banknotes and CBDC will run parallelly until any possible initial hiccups are resolved. CBDC has the potential to boost banking and finance, trade finance, and cross-border international settlements.

This explores the implications of digital currencies for monetary policy and central banking in Africa, focusing on both opportunities and challenges. The rapid rise of digital currencies—ranging from Central Bank Digital Currencies (CBDCs) to cryptocurrencies and stablecoins—has significant consequences for African economies, where financial systems are evolving alongside digital innovations. Several African central banks, such as the Central Bank of Nigeria with its eNaira, are experimenting with or researching CBDCs to enhance financial inclusion, improve payment systems, and safeguard monetary sovereignty. This examines how digital currencies may influence key monetary policy transmission mechanisms, including interest rates, credit supply, and exchange rates. While CBDCs could strengthen monetary policy effectiveness by enabling direct monetary interventions and improving policy transmission, they also pose risks, such as disintermediation of the banking sector and challenges to money supply control. Furthermore, the rise of private cryptocurrencies could undermine monetary sovereignty by increasing currency substitution and capital flight risks. This also discusses the financial stability implications of digital currencies, including cybersecurity risks, operational vulnerabilities, and systemic risks arising from crypto-asset markets. It highlights the need for robust regulatory frameworks to manage these risks effectively while ensuring technological innovation is not stifled.In addition to risks, digital currencies offer significant opportunities for African economies, particularly in promoting financial inclusion and reducing cross-border payment costs. Strategic recommendations include phased CBDC implementation, investments in digital infrastructure, strengthened cybersecurity, regulatory reforms, and regional cooperation among African central banks. This concludes that a proactive and collaborative approach is essential for African central banks to harness the benefits of digital currencies while mitigating risks to monetary policy and financial stability. Digital currencies are poised to reshape Africa’s financial landscape, requiring adaptive, forward-looking policy responses.

Central bank digital currency: A systematic literature review using text mining approach