IMF: CBDCs Can Potentially Boost Middle East’s Financial Inclusion

The International Monetary Fund (IMF) conducted a survey among 19 central banks in the Middle East and Central Asia (ME&CA) region, which suggests that central bank digital currencies (CBDCs) may not be necessary for achieving policy goals.

While CBDCs can bring benefits such as improved financial inclusion and lower costs of financial services, the decision to adopt them requires careful consideration. The survey also suggests that improving existing digital payment systems may be a more practical alternative to CBDCs.

The IMF has been studying CBDCs and advising member countries on their integration into monetary systems. A senior IMF official has mentioned the potential for a global CBDC platform with capital controls to reduce payment costs.

Several ME&CA countries have explored CBDC use, including Saudi Arabia, which recently participated in a cross-border CBDC experiment with the Bank for International Settlements (BIS) for international trade.

IMF Managing Director Kristalina Georgieva has also stated that CBDCs could potentially replace cash in smaller economies.