CENTRAL BANK DIGITAL CURRENCIES IN INTERNATIONAL PRACTICE AND THEIR IMPACT ON FINANCIAL SYSTEMS

Abstract

The article provides an in-depth examination of international practices related to the implementation of Central Bank Digital Currencies (CBDCs) and offers a comprehensive analysis of their impact on the functioning and transformation of modern financial systems. The study clarifies the economic nature of CBDCs as a sovereign form of digital money issued by central banks and distinguishes them from private cryptocurrencies and other digital financial instruments. Special attention is given to the theoretical foundations of CBDCs and to the key approaches to their classification, including retail and wholesale models, as well as centralized and hybrid implementation architectures that are currently being tested or deployed across different countries. The paper systematically reviews international experience in CBDC development, highlighting differences in strategic objectives, institutional design, and technological solutions adopted by advanced economies and emerging markets. Particular emphasis is placed on the analysis of the main transmission channels through which CBDCs affect financial systems, notably payment infrastructure, monetary policy transmission mechanisms, and the structure of the banking sector. The study demonstrates that CBDCs have the potential to significantly modernize national payment systems by increasing transaction speed, reducing operational and settlement costs, and enhancing the resilience and accessibility of payment services for households and businesses. In addition to the positive effects, the article identifies and critically evaluates the potential benefits of CBDCs, such as improved financial inclusion, greater transparency of financial flows, and enhanced effectiveness of monetary policy instruments. At the same time, the research highlights a range of systemic risks associated with the introduction of central bank digital currencies. These risks include the possibility of banking sector disintermediation due to shifts in deposit behavior, heightened cybersecurity and operational threats, increased technological dependence, and complex challenges related to balancing transparency, data protection, and user privacy. The article substantiates the feasibility and necessity of a gradual and cautious approach to CBDC implementation, emphasizing the advantages of hybrid models that preserve the role of financial intermediaries while allowing central banks to maintain control over issuance and core infrastructure. It is argued that such models can mitigate systemic risks and support financial stability if accompanied by appropriate regulatory safeguards, technical standards, and institutional coordination. The findings underline the importance of comprehensive risk mitigation mechanisms, regulatory flexibility, and close cooperation between central banks, financial institutions, and supervisory authorities. Overall, the results of the study contribute to the ongoing academic and policy-oriented debate on the role of CBDCs in the evolution of modern financial systems. The conclusions may be particularly useful for policymakers, central banks, and regulatory institutions when designing and implementing national digital currency strategies in the context of accelerating digital transformation and growing global financial interconnectedness.