Digital Currency

Financial inclusion refers to the ability of individuals and businesses to access useful and affordable financial products and services — such as banking, credit, insurance, and payments — delivered in a responsible and sustainable way. Yet, as of 2024, over 1.4 billion adults globally remain unbanked, mostly in developing economies. Many are excluded due to factors like high banking fees, lack of proper documentation, or distance from physical bank branches.

How CBDCs Can Help

Central Bank Digital Currencies offer a way to digitize cash without requiring individuals to have a traditional bank account. With a smartphone or even a basic digital wallet, users can receive, store, and transfer money securely.

Key ways CBDCs can promote financial inclusion:

• No Need for a Traditional Bank Account: Individuals in rural or underserved areas can access digital currency through mobile wallets.

• Lower Transaction Costs: Sending or receiving small amounts of money becomes more affordable, even for cross-border remittances.

• Government Aid Distribution: Emergency funds or subsidies can be sent directly to citizens without intermediaries.

• Improved Trust: Backed by the central bank, CBDCs may increase trust among people wary of commercial banks or unregulated fintech services.