📄 Abstract
The sovereign transition toward Central Bank Digital Currencies (CBDCs) demands a fundamental reconfiguration of monetary law, supervisory mechanisms, and institutional governance frameworks. While retail and wholesale CBDCs offer substantial efficiencies in payment processing, cross-border interoperability, and financial inclusion, their deployment introduces critical systemic risks, most notably the structural disintermediation of commercial bank deposits, heightened liquidity volatility during market distress, and regulatory frictions surrounding transactional privacy and anti-money laundering enforcement. This study develops an integrated institutional and regulatory framework engineered for two-tiered CBDC architectures. We establish a dynamic macro-prudential holding cap mechanism coupled with state-dependent tiered remuneration to mitigate deposit drainage without impairing retail transactional efficiency. In addition, we design a cryptographic zero-knowledge identity-escrow protocol that reconciles individual privacy rights with statutory supervisory oversight. Empirical macro-financial stress simulations indicate that an adaptive, liquidity-indexed holding ceiling suppresses crisis-induced deposit flight by 82.4% relative to unconstrained issuance models, while preserving private sector credit formation and central bank balance sheet neutrality. These findings deliver a scalable, legally grounded operational blueprint for central monetary authorities and financial regulatory bodies navigating the implementation of sovereign digital payment infrastructures.
🏷️ Keywords
📚 How to Cite:
Vakhabov Bobur Alisherovich , REGULATORY MECHANISMS AND INSTITUTIONAL FRAMEWORKS FOR CENTRAL BANK DIGITAL CURRENCY PAYMENT SYSTEMS , Volume 14 , Issue 8, August 2026, EPRA International Journal of Economic Growth and Environmental Issues (EGEI) , Pages: 9 - 14 , DOI: https://doi.org/10.36713/epra28921