Faithin Omaha eBook Collection

Download or read book Central Bank Digital Currency's Role in Promoting Financial Inclusion written by Ashley Lannquist and published by International Monetary Fund. This book was released on 2023-09-22 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.