CBDC Benefits

CBDC Benefits

  • mdo  Admin
  •   Articles
  •   August 31, 2021

As part of the Economic Inclusion Hub DIGICEN examines the benefits of Central Bank Digital Currency (CBDC).

  • Economic growth: The CBDC would leverage the existing financial infrastructures and spur growth.
  • Good for innovation: The CBDC would promote financial innovation in the financial sector.
  • Good for app makers: Loyalty apps and similar app makers can make use of the CBDC.
  • Good for finance: There are lower costs associated with cash distribution and storage.
  • Inclusion: the Central Bank Digital Currency (CBDC) will be inclusive and available to anyone with a smartphone.
  • Simplicity: CBDC will be easier and simpler than regular bank accounts, and there won’t be monthly fees.
  • Cost-effective: There will not be a cost to use the CBDC, nor fees during quick transfers. It is like cash.
  • Complimenting: The CBDC will fully complement bank notes, coins, cash, and not replace them.
  • Convenient: The CBDC will be secure and simple to use on a smartphone app and through automated machines.
  • Secure: Safer and more secure than Bitcoin in three aspects: security of the currency, security of its users, and "sovereign" security. (See Jamaica CBDC).
  • Easy to manage: Topping up accounts is simplified through authorized agents or smart automated banking machines.
  • Easy to save: People can save money in their wallets without worrying about monthly fees.
  • Local economic growth: Easily do business with merchants using the CBDC just by using their smartphones.

For more read a primer here: A Primer on BOJ’s Central Bank Digital Currency » Bank of Jamaica

Learn more about Jamaica's CBDC.

cbdc central bank digital currency digital currency inclusion economic inclusion innovation economy

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