Digital Currencies to Improve Financial Access and Payment Systems in the Middle East: IMF Report
The International Monetary Fund (IMF) reports that 19 countries in the Middle East and Central Asia. Including Bahrain, Georgia, Saudi Arabia, and the UAE, are advancing in the “proof-of-concept” stage for central bank digital currencies (CBDCs).
The IMF supports these countries by helping to develop policies and regulatory frameworks to minimize financial risks. CBDCs are seen as a means to enhance financial inclusion and payment efficiency, particularly for oil exporters and Gulf Cooperation Council countries.
They can reduce transaction costs in cross-border payments and foster competition in the payments market, benefiting low-income regions and improving accessibility. However, challenges like low digital literacy and distrust in financial institutions need addressing to fully realize CBDC benefits.
Clever Robot News Desk 20th June 2024
