carstens4_WAKIL KOHSARAFP via Getty Images_cbdcs WAKIL KOHSAR/AFP via Getty Images

CBDCs for the People

With the rapid adoption of digital payment technologies, central banks have an opportunity to explore reforms and new tools, including by issuing their own digital currencies. Provided that policymakers get the design right, a CBDC could go a long way toward improving financial inclusion and driving innovation.

THE HAGUE/BASEL – Central banks around the world are considering whether to issue their own digital currencies. While financial inclusion is often cited as a key motivation, this outcome is not automatic. Precisely how can central bank digital currencies (CBDCs) be designed and implemented to ensure that “unbanked” people have access to essential financial services?