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| Dominique Torre and Qing Xu |
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| ''Could migrant families encourage the adoption of CBDCs in developing countries?'' |
| ( 2025, Vol. 45 No.2 ) |
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| We examine the potential of upcoming Central Bank Digital Currencies (CBDCs) to be used as a means of transferring remittances. In a simple theoretical model, CBDCs compete with traditional channels provided by specialized intermediaries and with digital transfer options already offered by fintech companies. Their success depends on factors such as anonymity, potential conversion into cash, and the network effects generated by CBDC transactions among recipients' families. |
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| Keywords: Central Bank Digital Currencies, cross-border payments, fintechs, remittances, anonymity |
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
D8 - Information, Knowledge, and Uncertainty: General |
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| Manuscript Received : Sep 13 2024 | | Manuscript Accepted : Jun 30 2025 |
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