Cultural values and the adoption of central bank digital currency

ABSTRACT

This paper examines the impact of national culture on the decision of countries to adopt a central bank digital currency (CBDC). Using Hofstede’s cultural framework (i.e. Power Distance, Individualism, Masculinity, Uncertainty Avoidance and Long-term Orientation) to measure different cultural values, we find that countries with more power distance, masculinity and long-term orientation cultures are more eager to adopt a CBDC. By contrast, countries with a cultural value leaning towards uncertainty avoidance are less involved in the adoption of a CBDC. These results hold more for retail CBDC than for wholesale CBDC.

KEYWORDS:

• National culture
• central bank digital currency
• wholesale CBDC
• retail CBDC

JEL CLASSIFICATION:

• C23
• E58
• G28

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ CBDC Tracker can be assessed at: https://cbdctracker.org/