Central Bank Digital Currency's Role in Promoting Financial Inclusion

This paper analyzes the opportunities that central bank digital currencies may offer for improving financial inclusion in a particular country, alongside key designs and complementary policies, risks, and other relevant considerations.
READ MORE...
Volume/Issue: Volume 2023 Issue 011
Publication date: September 2023
ISBN: 9798400253331
$5.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
paperback else
pdf else
epub else
English
Prices in red indicate formats that are not yet available but are forthcoming.
Summary

Financial inclusion is a key policy objective that central banks, especially those in emerging and low-income countries, are considering for retail central bank digital currency (CBDC). If properly designed to address the barriers to financial inclusion, CBDCs have the opportunity to gain acceptance by the financially excluded for digital payments. CBDC can then serve as an entry point to the broader formal financial system. CBDC has special aspects that may benefit financial inclusion, such as being a risk-free and widely acceptable form of digital money, availability for offline payments, and potentially lower costs and greater accessibility. However, CBDC is not a panacea to financial inclusion, and additional experience is needed to fully understand its potential impact.