The use cases of central bank digital currency for financial inclusion: A case for mobile money

Central bank digital currency (CBDC) has begun to take root among central banks as an important concept for economic development and financial stability. At the end of 2018, Christine Lagarde, the Managing Director and Chairwoman of the International Monetary Fund, identified central bank digital currency CBDC as having the potential to “supply money to the digital economy” and “satisfy public policy goals” (Lagarde, 2018). While this statement comes off the back of growing interest in cryptocurrencies and other more efficient digital currencies, central banks around the world have started to actively recognise the benefits that a central bank digital currency could provide for national economies. These purported benefits range from its capability to enhance the effectiveness of monetary policy and promote cashless societies to facilitating financial sector deepening and greater financial inclusion by enabling more affordable and efficient financial services.