Exploring Public Perception and Economic Implications of Central Bank Digital Currencies (CBDCs): A Mixed-Methods Analysis

Exploring Public Perception and Economic Implications of Central Bank Digital Currencies (CBDCs): A Mixed-Methods Analysis

Economics

Ethan Tang

2025

This study investigates the implications of Central Bank Digital Currencies (CB DCs) for financial systems, focusing on their impact on commercial banking models, monetary policy, and public adoption, using The Bahamas’ Sand Dollar as a case study. Employing a mixed-methods approach that integrates theoretical and econo metric modelling with public perception surveys, it provides a comprehensive under standing of CBDC integration in both theory and practice. The analysis assesses how CBDCs influence bank liquidity, lending behaviour, and the coexistence of stablecoins while capturing public awareness and acceptance levels. Findings reveal that although CBDCs enhance payment efficiency, financial inclusion, and cross-border transaction capabilities, they simultaneously challenge traditional banking intermediation and raise concerns about privacy and cybersecurity. Insights drawn from The Bahamas’ early adoption experience demonstrate the importance of public trust, technological readi ness, and regulatory clarity in shaping outcomes. Overall, this research offers evidence based guidance for policymakers and financial institutions, contributing to global dis cussions on CBDC design, financial stability, and the balance between centralised and decentralised digital assets.

Central Bank Digital Currency (CBDC), Monetary Policy, Financial Intermediation, Digital Finance, Financial Inclusion.