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James Hurren explores what early CBDC deployments across Asia, the Caribbean, and Europe reveal about usage, adoption, and the future of cross-border digital money. Central bank digital currencies (CBDCs) have rapidly evolved from theoretical concepts into live pilots and national deployments.
Over 350 million adults in Africa live on a cash-only basis ( [link] ), without access to financial accounts, credit cards, or lending facilities. Digital currency systems could prove to be key in improving financialinclusion and opening up new opportunities to large underbanked communities in many African countries.
Inputs from academia, industry leaders, and government bodies informed the design and architecture of the wholesale Digital Rupiah. Collaborative efforts align with the Indonesia Payment System Blueprint 2030, which prioritises innovation, financialinclusion, and economic sustainability.
To that end, Bloomberg reported at least some financial regulators from the European Union say there need to be strict controls governing central bank digital currencies in place — and Libra (among other private efforts) may present a threat to financial stability.
– Increased financialinclusion Cryptocurrencies provide a potential solution for individuals who are marginalised or excluded from traditional financial services and institutions. By leveraging cryptocurrencies, these individuals gain access to financial tools and services previously unavailable to them.
A Central Bank Digital Currency (CBDC) is a digital form built on blockchain technology of a country’s fiat currency issued and regulated by the central bank. Wholesale CBDCs : These are designed for financial institutions and are used for large-scale transactions, such as interbank transfers or cross-border payments.
As many as 80 percent of the 66 central banks polled by the Bank of International Settlements said they were at some stage of CBDC development. China has been at the forefront of those efforts, at least as measured in terms of debuting an actual CBDC, and is in the midst of testing its digital yuan in various settings.
Regions like Africa are seeing digital wallets driving financialinclusion, as seen with M-Pesa, which has connected millions of unbanked individuals to financial services. Digital wallets are expanding faster than financial oversight can keep up, forcing governments to scramble for new safeguards without choking innovation.
This trend highlights efforts to enhance monetary sovereignty, boost financialinclusion, and modernise payment systems in an increasingly digital world. It competes with the official Chinese Digital Yuan, which has seen more widespread adoption in China due to government promotion and integration into domestic financial systems.
Back in 2012, Sri Lanka had the highest financialinclusion rate in South Asia with two-thirds of its population having access to formal financial accounts. Furthermore, there were major tax cuts which further dampened much-needed government revenues. Could fintech be the catalyst it needs to see a revival?
Unlike traditional currencies issued by governments and central banks, cryptocurrencies are typically based on blockchain technology, a distributed ledger that records all transactions across a network of computers. By accepting cryptocurrency payments, merchants contribute to a more inclusive global economy. What are Stablecoins?
In APAC, financialinclusion has emerged as a driving force behind digital innovation. Many nations within the region have recognised the transformative potential of extending financial services to underserved populations. The absence of proper documentation and financial education presents significant hurdles.
The second event was the government’s sudden demonetisation of the 1,000 and 500 rupee notes in November 2016. By invalidating these high-denomination bills, the government aimed to reduce illicit cash flows, which accelerated the adoption of digital payments across the country.
They will discuss how the recently published white paper on "Faster Payments and FinancialInclusion" illustrates the pain points and barriers to financialinclusion, actions, and solutions to expand, requirements of the underserved, action and solutions for issues, and considerations for faster payment stakeholders.
This project aims to create a multi-central bank digital currency (CBDC) platform for instant cross-border payments and settlements, leveraging distributed ledger technology (DLT). Several commercial banks have already started using the mBridge platform to facilitate cross-border CBDC payments among participating jurisdictions.
The new infrastructure aims to broaden financialinclusion, digitization transactions, and bolster government revenue. The Raast system was developed in collaboration between the State Bank of Pakistan and the Bill & Melinda Gates Foundation , and it would be the first in the country to integrate government entities and FIs.
As governments and financial institutions adapt to the evolving environment, these changes are influencing the development and adoption of new payment systems. The future of payments in Asia, therefore, promises not only technological advancement but also a new era of financialinclusivity and efficiency.
The government has also been proactive in supporting fintech growth. Its 2022-2025 Fintech Development Plan sets out to build a ‘digitalised, intelligent, green and fair’ fintech sector, focusing on eight key objectives, including the development of digital infrastructure and enhanced fintech governance. With over 1.4
Our ability to, with financialinclusion, reach and serve people we could never reach before, to create new contextual commerce, to say how in new spaces or new environments that people are exploring can we ensure that they can access the Mastercard network, which helps them build their businesses.
For instance, on the Pathways stage in the afternoon, we delved into ‘The Magic of Wealth Management Among the Gen Zs’ which saw Yada Piyajomkwan from Ajaib and Mehnaz Rabbani from the BRAC Insititute of Governance and Development in a fireside chat.
This technological approach eliminates the use of physical cards or PINs during financial interactions. Central Bank Digital Currency (CBDC) A CBDC represents a nation’s currency in digital form, administered directly by the central bank. Unlike physical cash or bank deposits, CBDCs are purely electronic.
Jurisdictions, like the EU with its AI Act, similar to MiCA for crypto, are developing frameworks to govern these technologies. This development offered a potential path toward a more comprehensive approach to governing the booming digital asset class. A key question is how CBDCs will interact with existing cryptocurrencies.
This marks a critical milestone in the exploration of a Central Bank Digital Currency (CBDC). This phase, part of the Immediate State of Project Garuda, focused on testing a distributed ledger technology (DLT)-based wholesale cash ledger system to assess its feasibility, security, and compatibility with Indonesia’s financial ecosystem.
The Tunisian government has taken proactive steps to nurture a thriving startup ecosystem and enhance digital infrastructure, recognising entrepreneurship as a catalyst for economic growth.
CBDCs continuing to gain traction Central Bank Digital Currencies (CBDCs) are set to take a significant step forward in 2025, as more countries move from pilots to implementation. The development of CBDCs is a long-term trend, with many projects not expected to be completed until 2026 or later.
PPSB), is the first government digital-only, branchless bank designed to meet the financial needs of Overseas Filipinos. With expertise in SME banking and advanced financial technology, PAObank received a banking licence from the Hong Kong Monetary Authority in May 2019 to offer digital banking services.
While central banks across the globe have begun researching the possibility of introducing a central bank digital currency (CBDC), only three countries have officially launched one, and we still await one from a genuine world leader – aside from China piloting the digital Yuan with questionable levels of adoption.
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