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Synthetic Control Analysis of Mobile Money Adoption following CBDC Implementation in The Bahamas
Department of Business and Economics, Bangkok Patana School, Bangkok, Thailand
Department of Business and Economics, Bangkok Patana School, Bangkok, Thailand
- 1 Department of Business and Economics, Bangkok Patana School, Bangkok, Thailand
- 2 Department of Business and Economics, Bangkok Patana School, Bangkok, Thailand
Theoretical Economics Letters·Volume 15 (2025)·Pages 1038–1049·Published 2 July 2025·DOI10.4236/tel.2025.154057
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Abstract
This study evaluates the impact of The Bahamas’ Central Bank Digital Currency (CBDC), the Sand Dollar, on mobile money usage by using the Synthetic Control Method (SCM). By choosing a selection of Small Island Developing States (SIDSs) that did not adopt CBDCs, we construct a synthetic counterfactual scenario to estimate what mobile money adoption would have looked like in the absence of the Sand Dollar. Our results showed that mobile money usage in The Bahamas significantly diverged from its counterpart, suggesting that the Sand Dollar played a critical role in accelerating financial participation.
KeywordsCentral BankingMonetary PolicySupply of Money and CreditFinancial Inclusion
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