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 <p class="is-style-lead">James Wallis, Ripple’s Vice President for Central Bank Engagements, recently shed light on the role central bank digital currencies (CBDCs) play in advancing global financial inclusion.</p>
 <p class="is-style-default">In a fresh YouTube video, Wallis emphasizes the aim of extending financial services worldwide, particularly to those with modest incomes and no affiliations with traditional financial institutions.</p>
 <h2 class="wp-block-heading" id="understanding-financial-exclusion">Understanding financial exclusion</h2>
 <p>Wallis delves into the roots of financial exclusion, citing low incomes and the absence of connections with financial institutions as primary factors.&nbsp;</p>
 <p>This absence often results in a lack of credit history, presenting a barrier for individuals seeking financial services. In regions grappling with financial exclusion, traditional banks, driven by shareholder interests, face challenges in serving those with limited resources.</p>
 <figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio">
  <div class="wp-block-embed__wrapper"><iframe title="Central Bank Digital Currencies and Financial Inclusion with James Wallis" width="1020" height="574" src="https://www.youtube.com/embed/eLN1MphSdkg?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> China has completed testing for its privacy-first CBDC blockchain ‘mBridge’
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 <h2 class="wp-block-heading" id="the-cbdc-solution">The CBDC solution</h2>
 <p>According to Wallis, CBDCs emerge as a cost-effective solution by facilitating financial services at a notably lower cost compared to traditional methods. These digital currencies offer streamlined payment options and the opportunity to establish credit, even for individuals without prior ties to financial institutions.&nbsp;</p>
 <p>This, Wallis argues, empowers individuals to build credit histories, access borrowing capabilities, and stimulate business growth. In essence, CBDCs represent a transformative innovation addressing the global challenges of financial inclusion. CBDCs are digital currencies issued by central banks, with their value intricately tied to the official currency of the issuing country.&nbsp;</p>
 <p>Wallis believes that the unique attributes of CBDCs position them as a catalyst for change, especially in the realm of financial inclusion.</p>
 <h2 class="wp-block-heading" id="imf-s-perspective-on-cbdcs">IMF’s perspective on CBDCs</h2>
 <p>The International Monetary Fund (IMF) weighs in on the potential evolution of CBDCs, suggesting that these state-issued digital currencies could eventually replace cash. Kristalina Georgieva, the Managing Director of the IMF, sees CBDCs as a means to offer resilience, particularly in more advanced economies.&nbsp;</p>
 <p>Moreover, she envisions CBDCs improving financial inclusion in regions where few individuals have bank accounts, presenting a distinct perspective on the transformative potential of these digital currencies.</p>
 <h2 class="wp-block-heading" id="mastercard-wary-of-cbdcs">Mastercard wary of CBDCs</h2>
 <p>In contrast to the optimistic view held by James Wallis and the IMF, Mastercard — one of the world’s largest payment-processing providers — remains skeptical. Ashok Venkateswaran, APAC Head for Digital Assets and Blockchain at Mastercard, asserts that there is currently insufficient justification for the CBDC adoption.&nbsp;</p>
 <p>Consumers remain comfortable using existing forms of currency, he says, citing the reliability of cash for their transactions.</p>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Nobel’s charity trust to lobby CBDCs with new initiative
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/ripple-vp-james-wallis-bullish-on-cbdcs-unlike-mastercard-tbt70852.html">https://thebittimes.com/ripple-vp-james-wallis-bullish-on-cbdcs-unlike-mastercard-tbt70852.html</a></p>

Ripple VP James Wallis bullish on CBDCs, unlike Mastercard

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