Regulatory Perceptions of Central Bank Digital Currencies: A Qualitative Study of Financial Policy Stakeholders

Abstract

Context and Objective The emergence of Central Bank Digital Currencies (CBDCs) marks a significant paradigm shift in digital finance, challenging and redefining the dynamic between technology, regulation, and monetary security. The study examines the prerequisites for a CBDC, such as financial innovation, stability concerns, privacy and security concerns, and institutional capacity and focuses on the effect of regulatory perceptions. Method The study is based on the adaptive regulatory governance framework to understand how regulatory responses can help close the gap between digital financial transformation and successful CBDC adoption. Results The results reveal that, apart from technological readiness, there is a need for a combination of regulatory approaches that involve systemic risk management, public trust, and institutional capacity in the implementation of a CBDC. Conclusion The study helps to fill the gap in knowledge about governance mechanisms needed for sustainable and resilient digital financial transformation.