The introduction of CBDC is not just about benefits. According to a Bank of Canada working paper, it is linked to a number of numerical, financial and practical inclusivity. The authors of the paper speak of :
- Financial inclusion: access to financial services for all individuals, including First Nations people and seniors.
- Digital inclusion: ensuring that all sections of the population have equitable access to the digital technologies they need to use financial services.
- Practical accessibility: consider the practical aspects and skills required to use a given technology successfully.
The challenges of introducing CBDCs
The paper points out that the number of individuals facing barriers or exclusion is greater than previously thought. If a central bank digital currency (CBDC) is introduced without taking into account the three aspects of accessibility, users could suffer disadvantages.
For example, First Nations people in Canada live further away from financial institutions, and their financial inclusion depends on digital access. However, they may have fewer skills in using digital technology. Usability issues and cognitive load could also pose barriers for seniors as the population ages.
Challenges specific to indigenous populations
When it comes to First Nations people, it's crucial to work with the communities concerned. By working together, we can understand their specific needs and address issues of financial and digital inclusion. This can involve setting up appropriate infrastructures and offering training in the use of digital technologies.
Obstacles encountered by seniors
For the elderly, CBDC design must take into account users with cognitive or physical limitations. A user-friendly, easy-to-use interface must be guaranteed. Added to this are options for support and assistance when needed.
Central bank intervention to meet these challenges
Overcoming these challenges requires a broader vision. Central banks will have to address issues generally considered to be outside their field of interest. Central banks will need to work closely with a variety of actors and institutions to :
- Promoting financial and digital education for disadvantaged or isolated populations.
- Develop infrastructures adapted to the specific needs of different social groups and communities.
- Introduce protection and support mechanisms for users who have difficulty accessing digital financial services.
The case of Canada: a previous study on the usefulness of CBDCs
According to a previous study, most Canadians have no particular reason to use a CBDC. However, this finding should not prevent monetary authorities from carefully examining issues of inclusion.
Conclusion
Central banks will face unknown challenges in achieving CBDC inclusivity, according to a study. A proactive and collaborative approach is essential. This will enable the design and implementation of financial systems that take into account the specific needs of different populations. Only a concerted effort by all stakeholders will achieve a truly inclusive financial system.r a CBDC. However, this finding should not prevent monetary authorities from carefully examining issues of inclusion.
