Will Central Bank Digital Currencies Be a Game-Changer for Financial Inclusion?

Central banks have been eying the emergence of privately issued digital currencies with a mix of excitement and anxiety and some began experimenting with their own versions of crypto: central bank digital currencies (CBDCs). Advocates say CBDCs offer an alternative to private digital currencies that will enable central banks to retain their control over national monetary supplies, better combat money laundering and fraud, and even advance financial inclusion.

But are CBDCs really the game-changer for financial inclusion that many claim? What are the key enablers and constraints to CBDCs advancing financial inclusion? And how are central banks thinking about designing CBDCs to ensure that they achieve their goals?