Who is ready for CBDC? A multi-pillar cross-country readiness index and toolkit for policy makers

Abstract This paper introduces a comprehensive, multi-pillar Central Bank Digital Currency (CBDC) Readiness Index, designed to assess the foundational capacity of countries for implementing CBDCs. The index comprises five pillars: Digital and Technology Infrastructure, Economic and Household Capacity, Financial Depth and Inclusion, Institutions and Regulation, and Macro Resilience and Policy, providing a data-driven framework for evaluating CBDC readiness. Unlike existing indices that focus on project status or attention measures, this index emphasizes long-term structural factors such as digital infrastructure, financial inclusion, and institutional strength. Constructed using a robust, auditable methodology, the index employs CRITIC information weighting and geometric aggregation to ensure transparency and reliability. Calculated for up to 183 economies, the index allows for a comprehensive assessment of CBDC readiness, distinguishing it from individual design choices or short-term announcements. Robustness and sensitivity checks, including bootstrap resampling and leave-one-variable-out experiments, validate the stability of rankings. External validation against an independent dataset of CBDC projects, search interest and central-bank communication confirms that the index is positively associated with observed CBDC activity while remaining distinct from generic economic development, and a cluster analysis groups economies into four readiness archetypes that translate the index into differentiated policy guidance. The CBDC Readiness Index serves as a policy toolkit, enabling central banks and international institutions to identify digital, financial, and institutional barriers and to design CBDC projects aligned with country-specific readiness profiles.