Comparative Analysis Of Global Central Bank Digital Currency (CBDC) Projects

Abstract

This research paper presents a comprehensive comparative analysis of ten Central Bank Digital Currency (CBDC) initiatives implemented across varied geopolitical and economic landscapes. It evaluates these projects based on their policy objectives, technological frameworks, legal readiness, privacy structures, and inclusion strategies. A central hypothesis explored in this study posits that CBDCs—when designed with programmable traceability, real-time monitoring, and identity-linked features—can significantly curtail black-market and shadow economy transactions, especially in emerging economies like India. Empirical validation is conducted through a mixed-method approach combining comparative case analysis and a regression model using data from 15 countries. Results demonstrate that robust CBDC frameworks are associated with reduced cash dependency and lower indicators of informal economic activity. However, challenges such as digital exclusion, cybersecurity, and privacy concerns remain critical. The findings underscore that while CBDCs are powerful tools for financial transparency, their success hinges on legal safeguards, institutional trust, and inclusive digital infrastructure.