Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/333318 
Year of Publication: 
2025
Citation: 
[Journal:] Journal of Economics and Statistics [ISSN:] 2366-049X [Volume:] 245 [Issue:] 4/5 [Year:] 2025 [Pages:] 401-433
Publisher: 
De Gruyter Oldenbourg, Berlin
Abstract: 
We use agent-based modelling to build a digital twin of the retail payment system, where heterogeneous consumers and merchants interact, learn, and adapt as they meet and use different monies and payment instruments. As we introduce an rCBDC, the model simulates its adoption. We calibrate this digital twin to Spain's retail payment ecosystem. We run hypothetical scenarios that correspond to public discussions about the digital euro. Results show that introducing an rCBDC without attractive design options and stimulus results in low and slow adoption. Results suggest that the reverse waterfall functionality, a positive remuneration spread, and the distribution of government subsidies via rCBDC are effective in fostering adoption; yet, the distribution of government subsidies via rCBDC is the only one that creates incentives to reduce the use of cash. Balance limits and top-up limits are effective in restraining adoption. Results also suggest that combining design options and stimulus with limits to holding rCBDCs could aid in achieving a sweet spot of adoption.
Subjects: 
agent-based modelling
digital twin
money
payments
simulation
JEL: 
C63
D85
E42
E58
O33
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.