Could the digital Euro, Dollar or Yuan bank the unbanked?

[paxmao]

May time we forget that there are millions of people out there that do not have access to any type of banking. I am speaking of millions that do not geenrate a recurrent income, do not have access to credit and have their lives quite limited for that fact.

One of the possible advantages of having digital currencies that are recognised by strong central banks and can be moved digitally is the possible access of all this people to a system of storage, exchange and maybe even credit through the digital official coins. I can only begin to imagine how huge can be the economy enabled by these initiatives if bitcoin alone has already taken a preeminent place in a few countries such as Nigeria, Myanmar, Venezuela, ...

[Oshosondy]

What I have noticed in my country which is among the ones you mentioned is that most people that are not using bank are not also using a type of phone that can browse, they use a very cheap phones that they can just use for calls, if they can not use good phone, definitely they are also not having laptop. I believe CBDCs will be accessed through browsing phones or computers or maybe also stored on hardware wallets.

The present cryptocurrencies which are decentralized are enough for this, but yet such people do not know what cryptocurrencies are, that is just the problem, I do not think CBDCs can add anything to this for now as some people are not literates. It is people that are still using decentralized currencies that might be able to use CBDCs also. But these centralized cryptocurrencies may not let privacy to exist at all for users that are using the centralized cryptocurrencies.

[Poker Player]

I heard on the radio the other day that those digital curencies will eliminate the need for banks. With them, the Central Banks can give aid directly to certain sectors of the population or to individuals who request it and meet certain requirements. When the Central Bank decides to give the aid, it will simply transfer the digital currency to that person's wallet and will not need an intermediary bank.

It remains to be seen whether this will be the case, as I do not see central banks doing away with traditional banking just like that.

[bosede1]

In my Country Nigeria, I was surprised really when I saw that we are ranked 2nd in the crypto market. I wasn't really expecting that because some people like you said in my country don't have a bank account, I asked my office cleaner once if she has and she said no and with the rate at which people are really into this I was amazed.

[DooMAD]

I believe CBDCs will be accessed through browsing phones or computers

Once the gatekeepers have granted you access.  And given that they'll be the same gatekeepers who are currently keeping people unbanked in the current legacy financial system, I honestly don't expect CDBCs to be any different in that regard.  The floodgates are not going to rush open (IMHO).  They'll probably still want your multiple forms of ID, your proof of address, all the security checks they ask for now.  Wouldn't surprise me if they added some new checks as well.  Don't have some of those things they insist on having to prove your identity and satisfy their government-mandated checklist?  Too bad.  No entry for you. 

The people pushing for these CBDCs can give lip service by listing any number of potential advantages, but will be suddenly silent when none of those advantages materialise in execution.  They don't know how to change for the better.  It's an alien concept to them.

[Argoo]

I heard on the radio the other day that those digital curencies will eliminate the need for banks. With them, the Central Banks can give aid directly to certain sectors of the population or to individuals who request it and meet certain requirements. When the Central Bank decides to give the aid, it will simply transfer the digital currency to that person's wallet and will not need an intermediary bank.

It remains to be seen whether this will be the case, as I do not see central banks doing away with traditional banking just like that.

It seems to me that you did not fully understand this news. The central bank cannot send digital currency to people and to do it without the involvement of other banks. If we are talking about the stable coins of the central banks of states (CBDC), then the banks will all the same participate here.
CBDCs will partially displace fiat currencies from circulation, but they will not completely replace them. The need for paper money will all the same exist both on the part of states and on the part of certain groups of people.

[teosanru]

May time we forget that there are millions of people out there that do not have access to any type of banking. I am speaking of millions that do not geenrate a recurrent income, do not have access to credit and have their lives quite limited for that fact.

One of the possible advantages of having digital currencies that are recognised by strong central banks and can be moved digitally is the possible access of all this people to a system of storage, exchange and maybe even credit through the digital official coins. I can only begin to imagine how huge can be the economy enabled by these initiatives if bitcoin alone has already taken a preeminent place in a few countries such as Nigeria, Myanmar, Venezuela, ...

I think even worse than that some areas and set of people don't even have access to Technology & Computers too so even if Banks create digital currency they still won't be able to take any advantage of it, but let's keep that apart, talking about the possibility of it how exactly will digital coins help in banking the unbanked? Infact I think it's easier to operate a bank account than to operate a digital wallet isn't it? Moreover, if the government isn't able to bank the unbanked with a normal currency, something like a CDBC would be a lot more difficult task for them to handle. I don't really understand your idea?

[carlfebz2]

May time we forget that there are millions of people out there that do not have access to any type of banking. I am speaking of millions that do not geenrate a recurrent income, do not have access to credit and have their lives quite limited for that fact.

One of the possible advantages of having digital currencies that are recognised by strong central banks and can be moved digitally is the possible access of all this people to a system of storage, exchange and maybe even credit through the digital official coins. I can only begin to imagine how huge can be the economy enabled by these initiatives if bitcoin alone has already taken a preeminent place in a few countries such as Nigeria, Myanmar, Venezuela, ...

We cant really deny that not all does have the access nor able to benefit out when it comes to those banking services due to lack of capacity or capability when it comes to finance sector and its true
that ones these digital coins would commence out then that would surely be a relevant move.

Comparing about Initiatives between these digital coins compared to bitcoin is somewhat really be different because when it comes to exposure or marketing then nothing beats out when government
do really introduce things up.

People who had been used to traditional things will easily believe on and would just simply stick on it.

[dothebeats]

The only difference on CBDCs and today's fiat is the medium through which they are generated. Those who manages them will still be the same people that require you to submit a lot of unnecessary documents before being "considered" to have a bank account done on your name. If anything, the requirements will even be unnecessarily tougher, with the reasoning that everything exists digitally so why would it be hard for one to get those? It will not bridge the gap on the bank and the unbanked statistics, and instead will be widening it should we ever come to a time when CBDCs are already enforced and is a reality to us.

[Oshosondy]

CBDCs will partially displace fiat currencies from circulation, but they will not completely replace them. The need for paper money will all the same exist both on the part of states and on the part of certain groups of people.

This will take time, it can even take centuries because there are many people that can not access browsing devices, some people are only using the phones because they are not having browsing phone, they only make use of phone to call, it will surprise you that some people are not even having phone at all. This will make fiat to still exist even in paper form because it is still very important in the society. In addition, many people are not literate or not literate enough to use cryptocurrencies, and this can take centuries before everyone in the world can blend to use cryptocurrencies. I still only see CBDCs as alternatives not replacement.

[paxmao]

I believe CBDCs will be accessed through browsing phones or computers

Once the gatekeepers have granted you access.  And given that they'll be the same gatekeepers who are currently keeping people unbanked in the current legacy financial system...

I think that it may be quite different actually. Commercial banks are there to make profit and they will avoid anyone that looks more of a problem than a profitable customer. However central banks may have political objectives in mind that could potentially help the unbanked since they do not intend to make a profit, or at least a profit in the way we may understand when thinking of a traditional bank.

There may be some gate-keeping, but it may not be like the ones we currently know. For example, there were no micro-credits until someone decided to start giving them - eg. in India - and they worked wonderfully.

[hatshepsut93]

People don't become ubanked because banks refuse to serve  them, they choose to be unbanked because they deal with cash only, for example if they are unofficially employed, so if they receive cash for their work, and don't get enough money to need to put it in a bank, there's no reason for them to open a bank account.

Unless CBDCs will come together with elimination of cash, the unbanked people would still exist and not use digital currencies.

[Darker45]

The primary reason why certain people are unbanked is poverty. And I am not only talking about poverty in its literal sense, although it is one of them. After all, you don't save money in the banks if you cannot even manage to bring food on the table 3 times a day. CBDCs cannot address this.

Furthermore, there are so many places in many countries where banks could only be accessed after hours and hours of travel and such is one of the reasons why the people are unbanked. Many of such geographically isolated places are also beyond the reach of electricity and other technologies. Again, this cannot be addressed by CBDCs.

We can go on and on and on. The point is that CBDCs can only bank those unbanked who could have accessed the services of the banks even without turning the old fiat into its digital form. Those unbanked because the banks do not want them would remain unbanked.

[Lorence.xD]

No, I don't think so, these CBDC are made  to aid the economy and track where the people are using their money for transactions. Not mention that not everyone can use CBDC because not everyone has mobile devices in them.

[jrrsparkles]

If people accepts bitcoins or any decentralized cryptocurrencies for payments then central banks won't exists any longer because they are alive by printing money and liquidating them into their economy. And also how a bank is going to recognize that the received cryptos as their income?

Sorry if I don't get your idea!

[wiss19]

May time we forget that there are millions of people out there that do not have access to any type of banking. I am speaking of millions that do not geenrate a recurrent income, do not have access to credit and have their lives quite limited for that fact.

One of the possible advantages of having digital currencies that are recognised by strong central banks and can be moved digitally is the possible access of all this people to a system of storage, exchange and maybe even credit through the digital official coins. I can only begin to imagine how huge can be the economy enabled by these initiatives if bitcoin alone has already taken a preeminent place in a few countries such as Nigeria, Myanmar, Venezuela, ...

First of all, who are going to be in control of the digital coins that you’re talking about? It’s still the same central banks and the member banks. So it’s still going to be the same thing as having a normal bank account, except maybe this time around if you want to make use of the digital coins you’re not going to be required to make deposit first while creating the account, and it will be made easier as you will be able to open an account by making use of your smartphone and you wouldn’t be required to go to the bank, you will just do it from the comfort of your home, but you’re still going to need all those documents that you submit to the bank when opening an account, like passport and ID. So there isn’t much difference.

[buwaytress]

As much as it pains me to say it, any CBDC will do far better than Bitcoin (or any other crypto, for that matter, unless it finds a way to run on mesh technology) in this "banking the unbanked" business.

Never mind CBDCs, I've seen how fintech working with banks in East Africa banked millions of people using cheap $10 phones (talking about personal experience seeing street stalls selling things for fractions of a cent using m-pesa. It was incredible 7 years ago, it's still incredible now.

[Poker Player]

It seems to me that you did not fully understand this news. The central bank cannot send digital currency to people and to do it without the involvement of other banks.

Why? I know what I heard and they were talking clearly about not needing banks as intermediaries. They also talked about creating coins with an expiration date, to stimulate consumption. According to you, can't they create digital currencies with expiration dates?

[Vatimins]

     I agree to the thought of people being more capable in money management or at least in a digital sense that isn't only about cryptocurrencies alone. But the problem about this is that being knowledgeable about digital assets and ways to keep them are quite difficult specially for the less fortunate ones who cannot access the internet or devices that are capable of doing so. Another problem is that to be able to actually avail of these modern money management services as mentioned, you need to actually have the money to manage and use. And that is the problem with the idea. We can only proceed with this idea if we can deliver knowledge to the less fortunate and traditional people and alleviate money problems that are caused by unemploymen. If this gets done step by step I bekieve that the economy of any country can and will really flourish.

[Mauser]

May time we forget that there are millions of people out there that do not have access to any type of banking. I am speaking of millions that do not geenrate a recurrent income, do not have access to credit and have their lives quite limited for that fact.

One of the possible advantages of having digital currencies that are recognised by strong central banks and can be moved digitally is the possible access of all this people to a system of storage, exchange and maybe even credit through the digital official coins. I can only begin to imagine how huge can be the economy enabled by these initiatives if bitcoin alone has already taken a preeminent place in a few countries such as Nigeria, Myanmar, Venezuela, ...

This sounds very promising, I am just not sure who is going to give credit to people who are not going to get credit at the moment. The credit companies with their ratings might make mistakes in some cases, but on average these credit scores are an important tool for banks who is eligible for a loan and who isn't. If there are no assets that could be used as collateral for the loan it becomes very difficult. If that money is digital or traditional fiat currency, the lender is always trying to protect their investments.