CBDCs should be innovative and efficient. Ultimately, the catalysts for researching CBDC depend on local needs. Central banks in economies with declining use of, and access to, cash are considering whether a CBDC could deliver an additional form of legal tender.
For example, in Sweden, the Riksbank is considering an e-krona as a digital complement to cash given the decline of cash in circulation.20 Conversely, central banks in economies with a heavily reliance on cash are investigating the potential for CBDC’s as a stepping stone to help the unbanked population move into the formal banking sector.21 A CBDC could improve financial inclusion, particularly if it is established with a government-led digital identity scheme.