Effects of the Development of Central Bank Digital Currencies on Financial Markets amid the Pandemic

Mikhail Kosov; Lyudmila Borisova; Sergey Popkov; Tatyana Kiseleva; Vadim Ponkratov; Maria Volkova; Larisa Vatutina; Nikolay Kuznetsov; Svetlana Dzusova; Florie Mazzorana

doi:10.28991/ESJ-2023-SPER-013

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Mikhail Kosov
mikhail_kosov_hse@mail.ru
1) National Research University Higher School of Economics, Russia. 2) Plekhanov Russian University of Economics, Russia. 3) Financial University under the Government of the Russian Federation,, Russian Federation
Lyudmila Borisova Don State Technical University,, Russian Federation
Sergey Popkov Moscow Metropolitan Governance University of Yury Luzhkov,, Russian Federation
Tatyana Kiseleva Financial University under the Government of the Russian Federation,, Russian Federation
Vadim Ponkratov Financial University under the Government of the Russian Federation,, Russian Federation
Maria Volkova Bauman Moscow State Technical University,, Russian Federation
Larisa Vatutina Moscow Polytechnic University,, Russian Federation
Nikolay Kuznetsov Financial University under the Government of the Russian Federation,, Russian Federation
Svetlana Dzusova Financial University under the Government of the Russian Federation,, Russian Federation
Florie Mazzorana International University of Monaco (OMNES Education),, Monaco

Vol. 7 (2023): Special Issue "COVID-19: Emerging Research"

Special Issue "COVID-19: Emerging Research"

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The study determined the influence of the Central Bank Digital Currency (CBDC) on the financial markets during the COVID-19 pandemic. It investigated if the CBDC had the potential to improve the efficiency and lending power of the financial system. The research relied on secondary data from a range of financial markets, such as the FTSE, MSCI, Gold Index, S&P 500, and Dow Jones, collected during the COVID-19 period. The quantitative approach was employed using the statistical software SPSS to perform descriptive statistics and regression analysis. The results revealed that the financial markets were negatively impacted by COVID-19, but the CBDC saw a higher level of development during the same period. The statistical analysis showed a positive and significant relationship between the CBDC Attention Index, the Uncertainty Index, and various financial market indices, with regression analysis indicating a significant impact of the CBDC Attention Index on all financial market indices except the Gold Index. However, this study has some limitations, including its limited scope of financial markets. Despite this, these results have important implications for academics and policymakers. It is recommended to increase the use of CBDC through well-crafted policies and legislation to fully realize its potential impact on the financial system.

Doi: 10.28991/ESJ-2023-SPER-013

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Kosov, M., Borisova, L., Popkov, S., Kiseleva, T., Ponkratov, V., Volkova, M., … Mazzorana, F. (2023). Effects of the Development of Central Bank Digital Currencies on Financial Markets amid the Pandemic. Emerging Science Journal, 7, 186–200. https://doi.org/10.28991/ESJ-2023-SPER-013

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