Fintech Notes

Central Bank Digital Currency Adoption: Inclusive Strategies for Intermediaries and Users

By Tayo Tunyathon Koonprasert, Shiho Kanada, Natsuki Tsuda, Edona Reshidi

September 20, 2024

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Tayo Tunyathon Koonprasert, Shiho Kanada, Natsuki Tsuda, and Edona Reshidi. "Central Bank Digital Currency Adoption: Inclusive Strategies for Intermediaries and Users", Fintech Notes 2024, 005 (2024), accessed November 18, 2024, https://doi.org/10.5089/9798400289422.063

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Summary

Among the countries that have launched central bank digital currency (CBDC) or are conducting large-scale pilots, adoption remains slow and limited due to various challenges such as lack of public awareness and trust, preference for existing payment methods, and inadequate incentives for intermediaries. Central banks cannot take it for granted that CBDC, once launched, will be adopted and scaled up easily. Forming part of the CBDC Virtual Handbook, this paper aims to encourage policymakers to consider CBDC adoption early on, by arguing that successful CBDC adoption hinges not only on technical readiness and operational robustness, but also on strategic policy and design choices that target end-user and intermediary involvement from the outset. The paper introduces The REDI Framework which outlines various regulatory strategies, education/communication initiatives, design/deployment choices, and incentive mechanisms to prepare for CBDC adoption.

Subject: Central Bank digital currencies, Currencies, Digital financial services, Financial inclusion, Financial markets, Money, Payment systems, Technology

Keywords: Adoption, Africa, CBDC, CBDC adoption, Central Bank digital currencies, Central bank digital currency, Central bank digital currency adoption, Central bank of Peru, Currencies, Digital financial services, EAUD payment, Financial inclusion, Global, IMF Fintech Note 2024/005, Incentives, Intermediaries, Payment systems

Publication Details

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