Blockchain, CBDCs and digital payments: navigating the uncharted terrain of financial evolution (part 2)
Last week, part 1 of “Blockchain, CBDCs and digital payments: navigating the uncharted terrain of financial evolution” considered the dynamic landscape of central bank digital currencies (CBDCs) and digital payments - from blockchain's impact on forex settlements to Google's proposal for offline CBDCs. And, as countries navigate regulatory complexities and address cybersecurity risks, striking a balance between innovation and regulation is crucial for realizing the transformative potential of CBDCs in fostering a secure, efficient and inclusive global digital financial ecosystem.
In Africa, the adoption of CBDCs has unveiled a complex interplay between financial inclusion and the expansion of the tax base. Kenya's success story with mobile money, exemplified by the M-Pesa app, has witnessed financial inclusion skyrocket from 26% in 2006 to an impressive 83% by 2022. However, a shift in government priorities (post-elections) has turned mobile payments into a tool for tax identification.…
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