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Cryptocurrencies and Central Bank Digital Currencies: A Comparative Analysis of Adoption Strategies

Author(s) Abhijith Vijayakumar Binsu
Country United States
Abstract This paper conducts a comparative analysis of the adoption strategies for cryptocurrencies and Central Bank Digital Currencies (CBDCs), highlighting their distinct features and implications for the global financial system. Cryptocurrencies, driven by market demand and decentralized technology, rely on community trust and innovation for adoption, facing challenges related to scalability, volatility, and regulatory uncertainty. Conversely, CBDCs, government-led initiatives, aim to enhance financial inclusion, monetary policy effectiveness, and payment efficiency, navigating concerns regarding privacy and potential disruption to traditional banking. The study examines the conceptual frameworks, adoption strategies, and real-world case studies of both digital currency forms, providing a comprehensive analysis of their similarities, differences, and broader economic impact. By exploring regulatory approaches, technological frameworks, and user adoption trends, this paper identifies key obstacles and future prospects for digital currencies. It concludes with policy recommendations that emphasize the need for a balanced approach, advocating for regulatory clarity, public-private partnerships, and cross-border collaboration to effectively integrate both cryptocurrencies and CBDCs into a resilient and innovative global financial ecosystem.
Keywords Cryptocurrencies, CBDCs, Digital Currency, Adoption Strategies, Blockchain, Financial Systems, Regulation, Monetary Policy
Field Business Administration
Published In Volume 5, Issue 6, June 2024
Published On 2024-06-05
Cite This Cryptocurrencies and Central Bank Digital Currencies: A Comparative Analysis of Adoption Strategies - Abhijith Vijayakumar Binsu - IJLRP Volume 5, Issue 6, June 2024. DOI 10.5281/zenodo.15074423
DOI https://doi.org/10.5281/zenodo.15074423
Short DOI https://doi.org/g89h6h

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