Monetary Policy Transmission in Hybrid Ecosystems: Assessing the Economic Impact of CBDCs and Stablecoins
The rapid digitalization of financial systems has engendered the emergence of a hybrid monetary ecosystem in which central bank digital currencies, stablecoins, and electronic money converge and interact. The relevance of this study is underscored by the imperative to evaluate how the proliferation of digital currencies influences the efficacy of monetary policy, the demand for money, and the composition of deposits. The purpose is to examine the role of digital currencies in shaping novel channels of monetary transmission and to compare countries with varying degrees of digital integration.
The study employed the ARDL/PMG panel econometric model with fixed effects for six nations – namely, the United States, China, Japan, Germany, Poland, and Ukraine, over the period from 2020 to 2024. An integral index of the hybrid monetary ecosystem (HMEI) was constructed, reflecting the advancement level of digital currencies, stablecoins, and mobile payments. The results indicated that in the United States, θ3 = −0.18, and in Germany, θ3 = −0.16, confirm a decrease in demand for M2 attributable to digital substitution. In China, HMEI = 0.74 is associated with a positive impact on deposits (+0.3 points), signifying the effect of confidence in e-CNY. In Ukraine, HMEI = 0.49 and δ1 = −0.50 reveal limited confidence in banks and a disintermediation effect. The overall level of explained model variation (Adj. R²) ranged from 0.58 to 0.71.
The findings suggest that digital currencies are redefining the structure of money circulation, undermining traditional monetary channels, and engendering the necessity for new regulatory frameworks. The results obtained lay the groundwork for updating the monetary policy in light of digital transformation and the financial stability enhancement.
Copyright© 2026 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
Article’s History: Received 5th of April, 2026; Revised 12th of May, 2026; Accepted 14th of June, 2026; Available online: 30th of June, 2026. Published as research article in the Volume XXI, Summer, Issue 3(93), 2026.
Prykaziuk, N., Lobova, O., Motashko, T., Prokofieva, O., Yukhumenko, V. (2026). Monetary Policy Transmission in Hybrid Ecosystems: Assessing the Economic Impact of CBDCs and Stablecoins. Journal of Applied Economic Sciences, Volume XXI, Summer, 3(93), 791 – 808. https://doi.org/10.57017/jaes.v21.3(93).06
Acknowledgments/Funding: The authors did not receive financing for the development of this research.
Conflict of Interest Statement: The authors declare no conflict of interest.
Data Availability Statement: The study is based exclusively on secondary data collected from publicly accessible databases and official reports, including sources from the World Bank, IMF, BIS, OECD, ECB, and other institutions cited in the References section. No proprietary or confidential data were used. The datasets and methodological details supporting the findings of this study are available from the corresponding author upon reasonable request.
Ethical Approval Statement: The research was conducted using publicly available secondary data and did not involve human participants, human subjects, personal data, or animal experimentation. Therefore, ethical review and approval were not required for this study under applicable research ethics regulations.
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