CBDC-A New Tool in 'Financial Inclusion' Tool Kit

The Central Bank Digital Currencies (CBDC), if appropriately designed, can help to improve the ‘Financial Inclusion’ in the Country.The Effective implementation needs a balanced, risk-based approach and the support to the complementary policies. The Central Banks in the World are actively considering, how the Retail Central Bank Digital Currencies (CBDCs) may fit with the Policy Goals around ‘Total Financial Inclusion’ in the Country. They are:~ Central Bank of The Bahamas.~ Bank of Canada.~ People’s Bank of China.~ Eastern Caribbean Central Bank.~ Bank of Ghana.~ Central Bank of Malaysia.~ Bangko Sentral ng Pilipinas.~ National Bank of Ukraine and~ Central Bank of Uruguay.While a Central Bank Digital Currency, like other forms of the Money, has different functions (e.g., Means of Payment, Store of Value, Unit of Account, Settlement Assets), its link to ‘Financial Inclusion’ in the Country in context of its payment properties.Abbreviations: CBDC= Central Bank Digital Currency.e-KYC= Electronic Know Your Customer.EMDEs=Emerging Markets and Developing Economies.AEs=Advanced Economies.PSPs=Payment Service Providers.ACHs=Automated Clearing Houses.