OVERVIEW OF CBDC IN DEVELOPING AND EMERGING COUNTRIES AND GLOBAL TRENDS

CONTENTS

EXECUTIVE SUMMARY 3

1 INTRODUCTION

2 OVERVIEW OF CBDC IN DEVELOPING AND EMERGING

COUNTRIES AND GLOBAL TRENDS

3 CBDC AND FINANCIAL INCLUSION IN DEVELOPING AND

EMERGING ECONOMIES 7

9

16

4 KEY FINANCIAL INCLUSION USE CASES FOR DEVELOPING AND EMERGING COUNTRIES 18

5 THE ROLE OF CBDC FOR FINANCIAL INCLUSION 26

6 POTENTIAL RISKS AND UNINTENDED CONSEQUENCES 34

7 KEY IMPERATIVES FOR CBDC AS A FINANCIAL

INCLUSION TOOL 37

8 CONCLUDING REMARKS 51

APPENDIX A: STAKEHOLDER INTERVIEWS

GLOSSARY OF TERMS

WORKS CITED AND REFERENCES 54

56

57

ACKNOWLEDGMENTS

This special report is a product of the Digital Financial Services Working Group (DFSWG) and its members. Contributors: DFSWG Members: Candy Ngula (Bank of Namibia), Johan van den Heever (Bank of Namibia), Tshering Wangmo (Royal Monetary Authority of Bhutan), Mohamed Helmy (Central Bank of Egypt), Mariam Yeghiazaryan (Central bank of Armenia), Stephen Ambore (Central Bank of Nigeria), Aisha Isa-Olatinwo (Central Bank of Nigeria), Clarence Blay (Bank of Ghana), Clarissa Kudowor (Bank of Ghana), Aktham Abuassi (Central Bank of Jordan), Cleopatra B. Davis (Central Bank of The Bahamas), Dorian Loyo (Comisión Nacional Bancaria y de Valores Mexico). From the AFI Management Unit: Adeyemi Omotoso (Policy Specialist, Inclusive FinTech and RegTech), Ghiyazuddin Mohammad (Senior Policy Manager, Digital Financial Services), and Robin Newnham (Head, Policy Analysis). We would like to extend a special thanks to Cenfri (consultant) for their contributions to this special report, as well as our external stakeholders including industry thought leaders; Professor Bitange Ndemo, Klaus Martin Löber, Bank of Canada, technology providers; Celo, Stellar, G+D, Mastercard, Algorand, eCurrency, R3, international organizations; World Bank, GIZ, IMF and CGAP. We would like to thank AFI member institutions, partners and donors for generously contributing to development of this publication.