The Impact of Central Bank Digital Currency on Enhancing Financial Inclusion

Financial inclusion is a priority for central banks, especially in emerging and low-income countries, when considering the implementation of retail central bank digital currency (CBDC). The successful design of CBDCs can help overcome barriers to financial inclusion and encourage the financially excluded to adopt digital payment systems. CBDCs can act as a gateway to the formal financial system, offering risk-free and widely accepted digital money that can be used for offline payments. Additionally, CBDCs have the potential to reduce costs and improve accessibility. However, it is important to note that CBDCs are not a cure-all solution for financial inclusion, and further research is necessary to fully understand their impact.

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