Examining the role of blockchain and public-private partnerships in design and deployment of blockchain-enabled CBDC

Abstract

The purpose of this study is to examine how blockchain technology with public-private partnerships (PPPs) can mitigate the challenges in design and deployment of Central Bank Digital Currencies (CBDCs). The study employs a quantitative approach, incorporating data from stakeholders through a questionnaire survey and an analysis of existing CBDC literature. The Kruskal-Wallis test is used to analyse survey data, collected from stakeholders, from financial institutions, technological businesses, and academia. The findings highlight the significance of embracing blockchain technology to improve CBDC security, scalability, and operational efficiency. Blockchain's solid framework and cybersecurity characteristics are critical for ensuring the integrity and trustworthiness of digital currency. Furthermore, the paper emphasizes the need of PPPs in driving innovation, building regulatory frameworks, and encouraging public education. These collaborations are critical for overcoming both technological and regulatory hurdles in CBDC deployment. The results highlight the need for balanced collaboration between the public and private sectors to successfully handle these difficulties, while employing blockchain technology to overcome execution constraints. In order to overcome impediments and guarantee the long-term survival and success of CBDCs, stakeholders must collaborate fairly and with openness. This study gives decision-makers and stakeholders insights into the opportunities and collaboration strategies for blockchain-enabled CBDCs.