Central Bank Digital Currency's Role in Promoting Financial Inclusion

September 22, 2023

Preview Citation

Format: Chicago

Ashley Lannquist, and Brandon Tan. Central Bank Digital Currency's Role in Promoting Financial Inclusion, (USA: International Monetary Fund, 2023) accessed November 17, 2024

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.

Subject: Central Bank digital currencies, Digital financial services, Economic sectors, Financial inclusion, Financial markets, Financial services, Payment systems, Technology

Keywords: Central Bank digital currencies, Central bank digital currency, Central bank digital currency's role, Digital financial services, Digital inclusion, Digital payments, Financial inclusion, Global, IMF Fintech Note 2023/011, IMF Library, Payment systems, Publication order, Publications service, Sub-Saharan Africa

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Fintech Notes No 2023/011
Stock No:

FTNEA2023011
ISBN:

9798400253331
ISSN:

2664-5912

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