Central bank and media sentiment on central bank digital currency: an international perspective
Published 8 Jul 2025 ยท www.bis.org
Overview
This study investigates the sentiments of central banks and media regarding central bank digital currencies (CBDCs) across 15 major global economies from 2016 to 2022. It uses large language models to create sentiment indices from central bank publications and news articles.
Key Insights
- Divergence in Sentiments: There is a significant divergence between central bank and media sentiments, varying over time and jurisdictions.
- Influence Dynamics: Central bank sentiment has a stronger influence on media sentiment than vice versa.
- Cross-Border Spillovers: Sentiment in leading economies affects sentiment in other regions.
- Market Impact: Positive central bank sentiment on CBDCs negatively impacts cryptocurrency returns and the stock performance of banking and payment-related firms.
Why It Matters
Understanding sentiment dynamics is crucial for financial professionals as it affects market behavior and investment strategies.
Actionable Implications
- Monitor central bank communications for potential market impacts.
- Adjust cryptocurrency and equity investment strategies based on central bank sentiment trends.
- Consider cross-border sentiment spillovers in global investment decisions.
researcher global article banking cross-bfsi financial-services banking-payments banking-capital-markets technology strategy regulatory