Central Bank Digital Currencies – A New Tool in the Financial Inclusion Toolkit?
Central banks are considering how retail central bank digital currencies may help support financial inclusion, if they are designed from the start with this goal in mind, according to a paper by the Bank for International Settlements. Central banks are considering design options that will promote innovation, including allowing for novel non-bank payment service providers; offering novel interfaces and offline payments; simplifying due diligence and electronic know-your-customer; and fostering interoperability (both domestically and across borders). Together, these features can address a range of existing barriers to financial inclusion.