Evolution of money to CBDC: perspectives on the current state, opportunities and threats

Rauf Faizov

Bachelor's thesis

Abstract:

This Bachelor Thesis aims to explore the historical evolution of money from barter systems to the establishment of standardized units of account now recognized as "money”. It provides insights into historical monetary policies, including the gold standard, and significant events such as the Bretton Woods convention. As part of the research a detailed examination of blockchain technology and various systems and protocols is conducted. Central Bank Digital Currency (CBDC) emerges as a significant development, marking the merging of traditional monetary systems with digital innovations. The Practical Part of the Bachelor Thesis focuses on uncovering perspectives and threats associated with CBDC adoption. It reveals the specific relationship between macroeconomic variables and the potential for CBDC implementation. The shadow economy and broad money represent 1,117 and 1,036 (exp(B)) exponentiated coefficient (odds ratio) respectively of a predictor variable in logistic regression analysis. Another important part of the research is ESG Analysis, where environmental, social, and governance factors are considered. Additionally, the analysis proves that new blockchain networks have bigger potential for innovations than Bitcoin, for example faster transactions and the ability to build layer two networks for different solutions.

Keywords

CBDC, Money, Stablecoin, Bitcoin, Economy, ESG analysis, logit regression

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 20. 3. 2024

Obhajoba závěrečné práce

• Obhajoba proběhla 20. 5. 2024
• Vedúci: Mgr. Elena Kuzmenko, Ph.D.
• Oponent: Petr Procházka, MSc Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Business Administration