H.M. Queen Máxima of the Netherlands, the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA), joined Benoît Cœuré, Head of the Bank for International Settlements (BIS) Innovation Hub, to co-host a virtual roundtable meeting on central bank digital currencies (CBDC) and financial inclusion on 27 October 2021.
The roundtable included central bank governors from select emerging markets, along with other stakeholders such as the Alliance for Financial Inclusion (AFI), Consultative Group to Assist the Poor (CGAP), International Monetary Fund (IMF), and the World Bank. Discussion offered an opportunity to expand understanding on financial inclusion motivations and concerns regarding CDBCs in various emerging markets. It also supported learning and a research agenda on the subject, and explored possibilities of future initiatives.
A CBDC is a digital form of money issued by the central bank for usage alongside physical notes and coins. CBDCs could offer businesses and consumers new opportunities to pay in the future, as well as support inclusion and innovation in an increasingly digital economy. But these currencies also bring new risks and raise important questions about the reshaping of the economy, financial systems, as well as how people interact with money and payments.
For more information on retail CBDCs, see the recently released G7 Public Policy Principles for Retail Central Bank Digital Currencies.