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Ripple VP James Wallis bullish on CBDCs, unlike Mastercard

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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.

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.

Understanding financial exclusion

Wallis delves into the roots of financial exclusion, citing low incomes and the absence of connections with financial institutions as primary factors.

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.

The CBDC solution

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.

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.

Wallis believes that the unique attributes of CBDCs position them as a catalyst for change, especiall

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Author: Ogwu Osaemezu Emmanuel

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