POTENTIAL RISKS AND UNINTENDED CONSEQUENCES 34

THIS REPORT IS STRUCTURED AS FOLLOWS

SECTION 1

Introduces the study and the problem statement. SECTION 2

Provides an introduction

and overview of the digital payment and CBDC landscape across developing and emerging countries and the world, before unpacking why and how central banks have been considering CBDC for their economies to date. SECTION 3

Digs into the financial inclusion status of developing and AFI member countries

to understand where gains have been made, but more importantly, where opportunities exist to catalyze further inclusion.

SECTION 4

Contextualizes prioritized use cases within developing

and emerging countries by evaluating the key trends driving DFS adoption within each, before exploring the most pertinent demand and supply barriers that impede greater access and usage.

SECTION 7

Provides a decision-making

roadmap for central banks in developing countries to assess whether CBDC is an appropriate tool to address financial inclusions concerns, and if so, how to tailor both its design and context to ensure it successfully achieves that goal. SECTION 5

Analyzes the potential of retail CBDC to address the supply and demand barriers identified in section 4 across key use cases by assessing which CBDC design features could uniquely alleviate their impact and support enhanced financial access and inclusion for individuals and merchants.

SECTION 8

Concludes the report with regional AFI member cheat sheets aimed at evaluating the readiness of key regions for CBDC, and the relevant design features worth considering for given contexts. SECTION 6

Highlights the key risks and unintended consequences that could affect consumers, central banks, payment service providers and other actors if CBDC design and implementation are not carefully considered.