Positive and negative narratives in the service of digital currencies as disruptive innovation

This research investigates the competing narratives surrounding decentralized cryptocurrencies, like Bitcoin, and state-backed Central Bank Digital Currencies (CBDCs). The primary contribution of this work is a conceptual model of these narratives, categorizing them into targeted positive and negative frames aligned with opposing goals of financial regulation versus deregulation. To empirically ground this model, a sentiment analysis of selected documents from news media and social media platforms was conducted for a pilot study to test the conceptual model and the sentiment analysis methodology. The analysis reveals a significantly more positive sentiment associated with CBDCs compared to Bitcoin. This finding suggests that narratives emphasizing stability, security, and state backing currently have greater traction in the analyzed media discourse. The paper concludes by discussing the implications of this narrative contest for the future adoption and regulation of digital currencies, highlighting the power of storytelling in the success of financial innovations.