Debmallya Chanda - Understanding Central Bank Digital Currency (CBDC) adoption through the lens of ABM

  • Presenting author: Debmallya Chanda (Università Cattolica del Sacro Cuore)

  • Authors: Debmallya Chanda, Aldo Glielmo, Domenico Delli Gatti

  • Session: B01C - Agent-Based Modelling - Tuesday 9:00-10:30 - Senate Hall

Success of CBDC will be decided by the adoption by the users in the economy when central banks will launch in their respective countries. What are the specific factors that will matter for CBDC adoption? We try to understand these questions through a macro Agent Based Model and a scale free network of users. We find that speed of adoption depends on how fast users are recommending CBDC to their peers. Remuneration of CBDC remains an interesting factor for some period right after introduction of CBDC in the economy but loses value after the economy converges to a steady state.