Analyzing public discourse on DeFi and CBDC using advanced NLP techniques: insights for financial policy and innovation

What is it about?

This research focuses on the online discussions around two important financial technologies: Decentralized Finance (DeFi) and Central Bank Digital Currency (CBDC). DeFi and CBDC have the potential to make the financial system more inclusive, efficient, and transparent. However, they also bring challenges, such as security and regulation issues, that need to be addressed before people fully accept them. To better understand how people feel about these technologies, the study uses advanced computer models like BERT and RoBERTa, which are designed to analyze large amounts of online conversations. These models help identify common themes and classify different opinions in social media discussions. The researchers also use a tool called BERTopic to group the discussions into five main topics. The results show that RoBERTa performs better than BERT in identifying and classifying these opinions. This information is useful for governments and financial institutions as they create policies and decide how to develop and regulate DeFi and CBDC in the future. The study also shows that combining different tools like classification and topic modeling is a powerful way to analyze public opinion and guide decision-making in the rapidly changing digital financial world.

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