The Impact of Central Bank Digital Currencies on the Banking Sector (An Empirical Study in the Central Bank of Iraq)

Abstract

This research aims to analyze the correlation and impact relationship between the main independent variable (central bank digital currencies) and the dependent variable (their effect on the banking sector) and to rank these variables according to their priority and significance. It also seeks to identify the significant differences in the responses of the surveyed sample based on personal variables such as (age, educational qualification, job position, and years of service). The analytical descriptive approach was adopted, utilizing a questionnaire as the main tool for collecting data and information from a sample of 365 individuals in managerial positions, including (department manager, first assistant department manager, second assistant department manager, division head, and assistant division head) at the Central Bank of Iraq in Baghdad. Data were also used to interpret the results, alongside conducting personal interviews with the officials. The responses were analyzed using the statistical programs (SPSS V.18) and (AMOS V.24), employing methods such as (weighted mean, standard deviation, percentage weight, coefficient of variation, Spearman's correlation coefficient, t-test, simple linear regression analysis, F-test, coefficient of determination (R²), and Chi-square test (X²)). Among the key findings of the research is the existence of a positive and strong correlation, along with a significant impact of central bank digital currencies on the banking sector, with the magnitude of this effect reaching 68%. Furthermore, significant differences were found in the responses of the surveyed sample based on personal variables, such as (age, educational qualification, job position, and years of service).