DIGITAL CURRENCIES AND THEIR IMPACT ON MONETARY POLICY IN DEVELOPING ECONOMIES

Authors

  • Sadikova Rano Abdullaevna Associate Professor of the Department of Economics and Tourism ORIENTAL UNIVERSITY Author

Keywords:

Digital currencies are rapidly changing the global financial ecosystem. In developing economies, where traditional banking infrastructure may be limited and inflationary pressures more volatile, the adoption of digital payment systems and decentralized cryptocurrencies has surged. According to Chainalysis (2023), countries such as Nigeria, Vietnam, and the Philippines rank among the top adopters of cryptocurrencies globally.

Abstract

This article explores how the rise of digital currencies—both cryptocurrencies and central bank digital currencies (CBDCs)—is transforming the monetary policy landscape in developing economies. It analyzes opportunities and risks, regulatory responses, and the implications for monetary transmission mechanisms. While digital currencies offer the potential to enhance financial inclusion and reduce transaction costs, they also pose challenges to monetary sovereignty, currency stability, and capital control effectiveness.

 

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Published

2025-04-01

Issue

Vol. 4 No. 38 (2025): INNOVATIVE DEVELOPMENTS AND RESEARCH IN EDUCATION

Section

Articles