5.13 Advantages of CBDCs

1. Efficiency: CBDCs streamline financial transactions, reducing costs associated with printing and distributing physical currency. They also enable faster and cheaper cross-border payments compared to traditional banking systems.

2. Financial Inclusion: CBDCs have the potential to extend financial services to underserved populations who lack access to traditional banking systems. This inclusion can foster economic growth and reduce inequality.

3. Policy Flexibility: Central banks can respond more swiftly to economic crises and adjust policies to stabilize the economy. CBDCs offer tools for targeted stimulus efforts and crisis management.