CENTRAL BANK DIGITAL CURRENCIES AND THE BUSINESS MODEL: REVIEW AND ANALYSIS

Barbara L. Neuby
Kennesaw State University

ABSTRACT

This study uses “systems theory” to investigate the impact of implementing the central
bank digital currency (CBDC) will have on the typical business model. As global central banks
develop their own electronic currency unit, businesses will not be forced to adapt to the e-unit
only but to the whole system. Thousands of players will operate within the new system in which
architecture and necessary software to participate is understood, implemented, and securely
operated to remain profitable, which will lead to a new field of experts and consultants. Until the
transition is complete, businesses that remain in the central-bank-fiat mode will straddle both
sides of the fence, burning through resources due to their attempt for stability to maintain payment
systems, marketing strategies, reporting and valuations. Uncertainty will also burden the markets.
Keywords: Systems theory, central bank digital currency, global central banks, payment systems, marketing
strategies, reporting, and valuation