Millions of people throughout the world live in poverty, yet many of them will soon have the opportunity to participate in the digital economy. Many discussions concerning cryptocurrency revolve upon financial inclusion, accessible services, and the unbanked. However, the details may stay hazy because individuals who talk about cryptocurrency are usually persons who are already involved in the financial system.
People are working hard to promote financial inclusion and service access for the vast majority of people who are unbanked or underserved.
Central bank digital currency (CBDC) will be used for a variety of purposes in various locations. There will be relatively little retail demand for CBDC in economies where individuals have moved away from high levels of cash usage, such as the United States and the United Kingdom, but there are places where cash is in short supply and CBDC can help to increase basic opportunities for prosperity and economic growth.
Through its Digital Cash offering, nChain collaborates with central banks to make CBDC more accessible. CBDCs in the region should “ensure continued access to an inclusive and stable form of central bank money for citizens, when physical cash usage is declining.” according to nChain director of marketing and strategy Simit Naik, who has worked in West Africa.
People who only have access to physical cash are limited to the most basic forms of transaction. By facilitating micro- and nano-payments, a CBDC would let people to enter the digital economy and offer new business ideas.
Although broadband access is required to engage in the digital economy, Naik assures that mobile phone penetration and connectivity are “much greater” than one may assume. As of the second quarter of 2022, the GMSA – a mobile communications association — estimated that the world had 5.3 billion unique mobile customers.
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