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KATHMANDU, NOVEMBER 2
Government-backed digital currencies can help remote communities leap-frog the limitations of traditional currencies and get more people into financial systems. Central bank digital currencies, which are issued and regulated by governments, can serve unbanked and under-banked populations.
They can allow people in remote areas to make cross-border payments by combining the safety, security, privacy, and low cost of cash with the ability to be used online without needing a bank account.
And they are backed by governments, so they carry less risk than some other digital currencies, such as Bitcoin or Ether, which are privately issued. This is why many developing countries are examining their use with hopes of increasing the availability of efficient and low-cost transactions, improved cross-border payments, greater access to the financial system, and increased economic growth. And, importantly, to facilitate innovation and the possibility of delivering offline access, which is needed with the increasing frequency and severity of disasters triggered by natural hazards, and in areas with limited or unreliable access to electricity and internet connectivity.
A version of this article appears in the print on November 3, 2022 of The Himalayan Times.
