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There are growing concerns about ongoing digital innovation in the private sector, which poses the possibility of central banks losing their autonomy and even being backward in payment efficiency. Hence, CBDC has become the reality of central banks with several economies' ongoing digitalization and adaptation. This review explores the growing literature on CBDC design, its emergence, variations, potentials, and challenges for smooth future applications. It addressed research articles and gray literature to accumulate the current implementation concerns. Findings show that CBDC poses prospects for exploiting emerging technology, efficient payment systems, tax collections, and tracking illegal financial activities. However, there were mixed expectations regarding financial inclusion, financial stability, bank runs, disintermediation, monetary policy, privacy, security, technology, sustainability, and regulatory framework. Finally, as CBDCs will reduce the influence of private money creation and digital alternatives, they ensure that the central bank remains at the center of the financial system in the future. 

Recent evidence indicates that citizens exhibit low involvement in financial activities within formal financial institutions. Therefore, this study explores how Digital Financial Literacy (DFL) influences savings in formal financial institutions. Using data from the Global Findex Database 2021 and the Standard & Poor’s Global FinLit Survey 2014, covering 135 countries, the study applies multiple regression analysis to assess how DFL predicts savings in formal financial institutions, while controlling for various country-level factors. The results show that among the three dimensions of digital financial literacy, financial skills and behaviors positively affect savings. In contrast, financial attitudes like trust in financial institutions and confidence in managing financial matters negatively affect savings behavior. Overall, financial literacy explains 78.8% of the variation in savings at the formal financial institutions across countries, with cross-validation supporting the robustness of the findings. This study contributes to existing literature by integrating several digital and segmented dimensions of financial literacy and enhancing external validity by including a broad range of countries for cross-country generalization in financial inclusion research.  

Recent evidence indicates that citizens exhibit low involvement in financial activities within formal financial institutions. Therefore, this study explores how Digital Financial Literacy (DFL) influences savings in formal financial institutions. Using data from the Global Findex Database 2021 and the Standard & Poor’s Global FinLit Survey 2014, covering 135 countries, the study applies multiple regression analysis to assess how DFL predicts savings in formal financial institutions, while controlling for various country-level factors. The results show that among the three dimensions of digital financial literacy, financial skills and behaviors positively affect savings. In contrast, financial attitudes like trust in financial institutions and confidence in managing financial matters negatively affect savings behavior. Overall, financial literacy explains 78.8% of the variation in savings at the formal financial institutions across countries, with cross-validation supporting the robustness of the findings. This study contributes to existing literature by integrating several digital and segmented dimensions of financial literacy and enhancing external validity by including a broad range of countries for cross-country generalization in financial inclusion research.  

There are growing concerns about ongoing digital innovation in the private sector, which poses the possibility of central banks losing their autonomy and even being backward in payment efficiency. Hence, CBDC has become the reality of central banks with several economies' ongoing digitalization and adaptation. This review explores the growing literature on CBDC design, its emergence, variations, potentials, and challenges for smooth future applications. It addressed research articles and gray literature to accumulate the current implementation concerns. Findings show that CBDC poses prospects for exploiting emerging technology, efficient payment systems, tax collections, and tracking illegal financial activities. However, there were mixed expectations regarding financial inclusion, financial stability, bank runs, disintermediation, monetary policy, privacy, security, technology, sustainability, and regulatory framework. Finally, as CBDCs will reduce the influence of private money creation and digital alternatives, they ensure that the central bank remains at the center of the financial system in the future.