Digital currencies and their potential impacts on financial stability

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Published: Nov 28, 2025
DOI: https://doi.org/10.51582/interconf.19-20.11.2025.003
Keywords:
digital currency, central bank digital currency, digital manat, financial stability, monetary policy transmission, cryptocurrencies and stablecoins, regulatory framework, payment systems, financial inclusion
Issue
No. 63(272) (2025): 12th ISPC «Theory and Practice of Science: Key Aspects» (November 19-20, 2025; Rome, Italy).
Section
Finance and Credit
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Main Article Content

Khalida Jafarova
Ganja State University; Republic of Azerbaijan
Yasaman Guliyeva
Ganja State University; Republic of Azerbaijan
Aytaj Huseynova
Ganja State University; Republic of Azerbaijan
Khagani Kazimov
Ganja State University; Republic of Azerbaijan

Abstract

The article reviews how digital currencies affect financial stability, distinguishing privately issued crypto-assets from central bank digital currencies (CBDCs). It maps key transmission channels—wealth and confidence effects, financial-sector linkages, and real-economy integration—and highlights the outsized risks of weakly regulated stablecoins. Against limited global CBDC launches, Azerbaijan’s “wait-and-learn” stance keeps the digital manat at the research stage while modernizing payments and engaging partners. The paper calls for legal clarity, strong cyber/technical safeguards, risk-based regulation of stablecoins and service providers, and transparent public communication. A phased path—targeted pilots and wholesale use cases—can unlock efficiency and inclusion while protecting monetary sovereignty and stability.


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Article Details

How to Cite
Jafarova, K., Guliyeva, Y., Huseynova, A., & Kazimov, K. (2025). Digital currencies and their potential impacts on financial stability. Scientific Collection «InterConf+», (63(272), 42–52. https://doi.org/10.51582/interconf.19-20.11.2025.003
Author Biographies

Khalida Jafarova, Ganja State University; Republic of Azerbaijan

Teacher, public legal entity

Yasaman Guliyeva, Ganja State University; Republic of Azerbaijan

Teacher, public legal entity

Aytaj Huseynova, Ganja State University; Republic of Azerbaijan

Teacher, public legal entity

Khagani Kazimov, Ganja State University; Republic of Azerbaijan

Teacher, public legal entity

References

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[https://en.wikipedia.org/wiki/Digital_renminbi](https://en.wikipedia.org/wiki/Digital_renminbi)