CBDC Benefits

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.

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