IMF Says CBDCs Could Boost Middle East's Financial Inclusion, Payment Efficiency
Summary
A survey of 19 central banks in the Middle East and Central Asia by the IMF suggests that while CBDCs can advance financial inclusion and lower financial service costs, they may not be essential for policy goals. The IMF advises careful consideration, noting that improving digital payment systems could be a more practical alternative. The survey also warns that CBDCs may compete with bank deposits, impacting bank profits and lending. The central banks in the region are exploring CBDC issuance to enhance financial inclusion and payment system efficiency, but the uptake may have marginal benefits without addressing other barriers like low digital literacy and distrust of financial institutions.
