Do Financial Markets and Safe-Haven Assets Affect CBDCs? Examining the Nexus between CBDC, Stock Index, Metal Commodity Futures, Oil Price, and Volatility

Abstract Understanding the determinants of central bank digital currencies (CBDCs) is crucial for ensuring financial stability, fostering innovation, and framing effective policies associated with the digitalization of currency. Therefore, we study how financial markets and safe haven assets can affect the CBDCs. Using time series econometric methods, we thoroughly investigate and obtain the results that highlight the importance of the main determinants in the CBDC uncertainty and attention index between the years 2015 and 2023. Our study shows that VIX, S&P500, and Silver are positively associated with both the CBDCUI and CBDCAI. However, Gold is negatively correlated with both dependent variables. Moreover, WTI oil is positively associated with CBDCUI. Our findings provide wider and important implications for regulators, investors, and businesses around the world.

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