Examining the co-movement between cryptocurrency uncertainty and central bank digital currency uncertainty

This paper investigates the dynamic co-movement between the Cryptocurrency Uncertainty indices and the Central Bank Digital Currency Uncertainty indices. We apply the wavelet coherence framework using weekly data from January 13, 2017, to December 30, 2022. The empirical results reveal the significa...

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Main Authors: Thai Hong Le, Duc Anh Nguyen, Tu Thanh Vu
Format: Article
Language:English
Published: HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE 2025-01-01
Series:Ho Chi Minh City Open University Journal of Science - Economics and Business Administration
Subjects:
Online Access:https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/3400
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author Thai Hong Le
Duc Anh Nguyen
Tu Thanh Vu
author_facet Thai Hong Le
Duc Anh Nguyen
Tu Thanh Vu
author_sort Thai Hong Le
collection DOAJ
description This paper investigates the dynamic co-movement between the Cryptocurrency Uncertainty indices and the Central Bank Digital Currency Uncertainty indices. We apply the wavelet coherence framework using weekly data from January 13, 2017, to December 30, 2022. The empirical results reveal the significant co-movement between the Cryptocurrency Uncertainty Indices and the Central Bank Digital Currency Uncertainty Indices. Our findings suggest that the Cryptocurrency Policy Uncertainty index is highly correlated with the Central Bank Digital Currency Uncertainty index in the medium and long term but with the Central Bank Digital Currency Attention index in the short term. Our findings thus indicate that the Cryptocurrency Policy Uncertainty index can be used to predict the Central Bank Digital Currency Uncertainty index. On the other hand, the Cryptocurrency Environmental Attention index has historically correlated with the Central Bank Digital Currency Uncertainty indices in terms of long frequency.
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institution Kabale University
issn 2734-9314
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language English
publishDate 2025-01-01
publisher HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE
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series Ho Chi Minh City Open University Journal of Science - Economics and Business Administration
spelling doaj-art-22620645eef14daca58b372d45b289d02025-08-20T04:02:28ZengHO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCEHo Chi Minh City Open University Journal of Science - Economics and Business Administration2734-93142734-95862025-01-01155698410.46223/HCMCOUJS.econ.en.15.5.3400.20252270Examining the co-movement between cryptocurrency uncertainty and central bank digital currency uncertaintyThai Hong Le0Duc Anh Nguyen1Tu Thanh Vu2University of Economics and Business, Vietnam National University Hanoi, HanoiUniversity of Economics and Business, Vietnam National University Hanoi, HanoiUniversity of Economics and Business, Vietnam National University Hanoi, HanoiThis paper investigates the dynamic co-movement between the Cryptocurrency Uncertainty indices and the Central Bank Digital Currency Uncertainty indices. We apply the wavelet coherence framework using weekly data from January 13, 2017, to December 30, 2022. The empirical results reveal the significant co-movement between the Cryptocurrency Uncertainty Indices and the Central Bank Digital Currency Uncertainty Indices. Our findings suggest that the Cryptocurrency Policy Uncertainty index is highly correlated with the Central Bank Digital Currency Uncertainty index in the medium and long term but with the Central Bank Digital Currency Attention index in the short term. Our findings thus indicate that the Cryptocurrency Policy Uncertainty index can be used to predict the Central Bank Digital Currency Uncertainty index. On the other hand, the Cryptocurrency Environmental Attention index has historically correlated with the Central Bank Digital Currency Uncertainty indices in terms of long frequency.https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/3400biwavelet coherencecentral bank digital currency uncertaintycryptocurrency uncertainty
spellingShingle Thai Hong Le
Duc Anh Nguyen
Tu Thanh Vu
Examining the co-movement between cryptocurrency uncertainty and central bank digital currency uncertainty
Ho Chi Minh City Open University Journal of Science - Economics and Business Administration
biwavelet coherence
central bank digital currency uncertainty
cryptocurrency uncertainty
title Examining the co-movement between cryptocurrency uncertainty and central bank digital currency uncertainty
title_full Examining the co-movement between cryptocurrency uncertainty and central bank digital currency uncertainty
title_fullStr Examining the co-movement between cryptocurrency uncertainty and central bank digital currency uncertainty
title_full_unstemmed Examining the co-movement between cryptocurrency uncertainty and central bank digital currency uncertainty
title_short Examining the co-movement between cryptocurrency uncertainty and central bank digital currency uncertainty
title_sort examining the co movement between cryptocurrency uncertainty and central bank digital currency uncertainty
topic biwavelet coherence
central bank digital currency uncertainty
cryptocurrency uncertainty
url https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/3400
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AT ducanhnguyen examiningthecomovementbetweencryptocurrencyuncertaintyandcentralbankdigitalcurrencyuncertainty
AT tuthanhvu examiningthecomovementbetweencryptocurrencyuncertaintyandcentralbankdigitalcurrencyuncertainty