Title

Linkages between CBDC and cryptocurrency uncertainties, and digital payment stocks

Authors

Imran Yousaf, Wenzhou-Kean University
John W. Goodell, University of Akron

Document Type

Article

Publication Date

6-1-2023

Abstract

We examine the connectedness between CBDC uncertainty, cryptocurrency policy uncertainty (UCRY policy), cryptocurrency price uncertainty (UCRY price), and digital payment stock returns and volatility using data from November 20, 2015, to December 30, 2022. We find CBDC uncertainty is a net recipient, while UCRY policy and UCRY price are net transmitters. Most digital payment stocks are net recipients except for the three largest of VISA, Mastercard, and American Express. Finally, net pairwise connectedness shows weak connectedness between uncertainties indices and digital payment stocks, consistent with the hedging capability of digital payment stocks against the uncertainties of CBDC and cryptocurrency markets.

Publication Title

Finance Research Letters

DOI

10.1016/j.frl.2023.103765

Recommended Citation

Yousaf, Imran and Goodell, John W., "Linkages between CBDC and cryptocurrency uncertainties, and digital payment stocks" (2023). Kean Publications. 132.
https://digitalcommons.kean.edu/keanpublications/132