James Wallis, Vice President of Ripple’s Central Bank Digital Currency (CBDC) Engagement, sheds light on the role of Central Bank Digital Currencies (CBDCs) in advancing global financial inclusion in a short video segment. Wallis emphasizes that financial inclusion aims to expand financial services for individuals worldwide, especially those with low incomes and no prior relationships with financial institutions. He points out key factors behind financial exclusion, including low income, lack of existing financial relationships, and the resulting lack of credit history.
In areas struggling with financial exclusion, banks are often profit-driven entities, posing challenges in serving individuals with limited resources due to the difficulty in generating profits from this demographic. Wallis affirms that CBDCs provide a cost-effective solution by enabling financial services at a much lower cost than traditional methods. Central Bank Digital Currencies offer simplified payment options and opportunities to establish credit, even without prior links to financial institutions. This enables individuals to build credit history, access borrowing capabilities, and stimulate business growth.
Wallis concludes that Central Bank Digital Currencies represent a transformative inساميtion addressing global challenges in financial inclusion. Ripple is actively involved in more than 20 central banks worldwide in CBDC initiatives and serves as the technological partner in stage deployments in countries like Bhutan, Palau, Montenegro, Colombia, and Hong Kong.
Moreover, Ripple has been honored by the Currency Research organization for its contributions to digital currency development and sustainability initiatives, particularly for promoting inساميtion in Central Bank Digital Currencies. Prior to its partnership with NBG for the Digital Lari Project, Ripple demonstrated proactive alignment with organizations aiming to delve into CBDC applications.
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