Central Bank Digital Currency: The Advent of its IT Governance in the financial markets

TL;DR

This paper systematically reviews how IT resources, tools, and governance models are applied in the adoption of Central Bank Digital Currencies (CBDCs) within financial markets, highlighting current practices and future research directions.

Contribution

It provides an updated systematic literature review identifying IT resources and governance models used in CBDC adoption in financial markets.

Findings

Many IT resources are used in CBDC adoption

Preliminary IT governance models are emerging for CBDC

Identifies gaps and future research directions in IT governance for CBDC

Abstract

Central Bank Digital Currency (CBDC) can be defined as a virtual currency based on node network and digital encryption algorithm issued by a country which has a legal credit protection. CBDCs are supported by Distributed Ledger Technologies (DLTs), and they may allow a universal means of payments for the digital era. There are many ways to proceed, they all require central banks to develop technological expertise. Considering these points, it is important to understand the new IT governance in the financial markets due to CBDC and digital economy. Information Technology is an essential driver that will allow the new financial industry design. This paper has the objective to answer two questions through an updated Systematic Literature Review (SLR). The first question is What IT resources and tools have been considered or applied to set the governance of CBDC adoption? The second; Identify IT governance models in the financial market due to CBDC adoption. Bank for International Settlements (BIS) publications, Scopus and Web of Science were considered as sources of studies. After the strings and including criteria were applied, fourteen papers were analyzed. This paper finds many IT resources used in the CBDC adoption and some preliminary IT design related to the IT governance of CBDC, in the results and discussion section the findings are more detailed. Finally, limitations and future work are considered. Keywords: Blockchain, Central Bank Digital Currency (CBDC), Digital Economy, Distributed Ledger Technology (DLT), Information Technology (IT), IT governance.