Integrating CBDCs into the Global Financial Architecture: Strategic Perspectives, Systemic Risks and Regulatory Constraints

Authors

  • V. Parshakov Zhytomyr Polytechnic State University, Zhytomyr, Ukraine.
  • K. Lysak Zhytomyr Polytechnic State University, Zhytomyr, Ukraine
  • I. Sydorchuk Khmelnytskyi National University, Khmelnytskyi, Ukraine.
  • K. Larionova Khmelnytskyi National University image/svg+xml
  • O. Fradynskyi Khmelnytskyi National University image/svg+xml

DOI:

https://doi.org/10.26437/1xcwjf32

Keywords:

Central bank digital currencies. decentralised technologies. digitalization. financial system. monetary policy

Abstract

Purpose: The purpose of this study is to investigate the integration of central bank digital currencies into the Global Financial Architecture. The objectives are to identify key trends with the introduction of central bank digital currencies, to determine prospects with the introduction of central bank digital currencies, and to identify the risks associated with the introduction of central bank digital currencies (CBDCs), as well as to outline possible scenarios for their integration into traditional financial systems in the context of global digitalisation of the financial sector.

Design/ Methodology/ Approach: The study employs a systemic, comparative, and case-study approach to examine different models of CBDC implementation in leading economies, including China, Sweden, Nigeria, the Bahamas, and the European Union. The methodology is based on content analysis of official central bank documents and international analytical reports issued by the Bank for International Settlements, the International Monetary Fund, and the United Nations Conference on Trade and Development, covering the period of this study. A synthetic approach is applied to integrate economic, technological, and legal dimensions of digital currency implementation.

Research Limitation: The study is limited by the evolving nature of CBDC projects and the availability of comparable empirical data across countries.

Findings: The introduction of CBDCs can enhance financial inclusion, improve the efficiency of payment systems, and strengthen the stability of monetary systems. At the same time, CBDCs pose significant risks related to financial disintermediation, cybersecurity threats, and data concentration. Analysis of the circulation dynamics of key CBDCs, including the e-CNY, Sand Dollar, and eNaira, shows that their further expansion requires stronger international regulatory coordination, increased cyber resilience, and harmonisation of technical standards to ensure successful integration into existing financial architectures.

Practical Implication: The results may assist central banks and regulators in designing CBDC frameworks that balance innovation with macro-financial stability, data protection, and risk mitigation.

Social Implication: Well-designed CBDCs have the potential to expand access to financial services, reduce transaction costs, and increase public trust in digital payment systems.

Originality / Value: The study provides a comprehensive, interdisciplinary assessment of Central Bank Digital Currencies (CBDCs) as institutional and technological innovations in monetary regulation, emphasising their role in reshaping state control over monetary circulation and modernising financial systems.

Author Biographies

  • V. Parshakov, Zhytomyr Polytechnic State University, Zhytomyr, Ukraine.

    Valerii Parshakov is a Doctoral Student at the Department of National Security, Public Administration and Administration, Zhytomyr Polytechnic State University, Zhytomyr, Ukraine.

  • K. Lysak, Zhytomyr Polytechnic State University, Zhytomyr, Ukraine

    Karolina LYSAK is a Postgraduate Student at the Department of National Security, Public Administration and Administration, Faculty of National Security, Law and International Relations, Zhytomyr Polytechnic State University, Zhytomyr, Ukraine.

  • I. Sydorchuk, Khmelnytskyi National University, Khmelnytskyi, Ukraine.

    Dr. Ivanna Sydorchuk is an Associate Professor at the Department of Finance, Banking, Insurance and Stock Market, Faculty of Economics and Management, Khmelnytskyi National University, Khmelnytskyi, Ukraine.

  • K. Larionova, Khmelnytskyi National University

    Dr. Katerina Larionova is an Associate Professor at the Department of Finance, Banking, Insurance and Stock Market, Faculty of Economics and Management, Khmelnytskyi National University, Khmelnytskyi, Ukraine.

  • O. Fradynskyi, Khmelnytskyi National University

    Dr. Oleksandr Fradynskyi is an Associate Professor at the Department of Finance, Banking, Insurance and Stock Market, Faculty of Economics and Management, Khmelnytskyi National University, Khmelnytskyi, Ukraine.

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30-06-2026

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Vol. 12 No. 4 (2026): African Journal of Applied Research

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Integrating CBDCs into the Global Financial Architecture: Strategic Perspectives, Systemic Risks and Regulatory Constraints. (2026). AFRICAN JOURNAL OF APPLIED RESEARCH, 12(4), 1-26. https://doi.org/10.26437/1xcwjf32