The Role of Digital Currencies in Emerging Economies

Abstract

This study examines the adoption and impact of digital currencies in emerging economies, focusing on India, Nigeria, and Brazil. Using survey data from 2,500 consumers and financial institutions, the research investigates how central bank digital currencies (CBDCs) and cryptocurrencies influence payment behavior, financial inclusion, and monetary policy effectiveness. Findings indicate that digital currencies enhance transaction efficiency, reduce costs, and provide greater access to banking services for unbanked populations. However, regulatory uncertainty, cybersecurity risks, and volatility present challenges. The study recommends clear regulatory frameworks, public awareness campaigns, and secure digital infrastructures to optimize the benefits of digital currencies. The results contribute to understanding the economic and social implications of transitioning toward digital monetary systems in developing nations.