Transformation of money institutions on the example of non-cash transactions and CBDC

Abstract

Purpose: in recent years, the unchanging institution of money has taken on a different dimension through the transformation of cash transactions into non-cash, very dynamic development of payment infrastructure, exemplified by system like BLIK, or even in global terms, intensive work of central banks on the construction of a new digital money system of central banks. These changes concern not only individual changes on local markets, a very good example of which is Poland as a leader in the digitization of banking systems, but also on global markets, on the example of digital money of central banks. Due to the rapid changes there is a need to examine the transformation of money institutions with a focus on non-cash transactions and Central Bank Digital Currencies (CBDC), exploring their implications for the financial system and broader economy, what is the aim of the chapter. The purpose of the chapter is to identify areas of changes within monetary institutions and to indicate their directions. Research method: the study employs targeted literature reviews, secondary data analysis, and a comparative study of cash versus non-cash transactions in Poland, alongside an analysis of global CBDC implementation as a big picture of changing World. Secondary empirical data was used, including: public statistics, industry reports, reports, press publications, data archives, databases, etc. It also includes an in-depth case study of the BLIK payment system in Poland. Results: the findings indicate a significant shift towards non-cash transactions in Poland, accelerated by technological advancements and the COVID-19 pandemic. Additionally, the global landscape of CBDC development is diverse, with countries at varying stages of exploration and implementation, reflecting the growing importance of digital currencies in modern economies. It appears that the new race full of challenges has already started for the whole World and the transitions from subsequent development phases to implementation will soon be visible. It is still very interesting moment as the CBDC development is currently in its growing phase. Research contribution: this research contributes to the understanding of the digital transformation of money, highlighting the growing gap between technological advancements and their practical implementation. It provides insights into the evolving financial landscape, particularly in the context of Poland’s rapid adoption of non-cash transactions and the global progression of CBDCs with its variety of phases.