CBDC usage will increase in Middle East & North Africa

Significance

Many Middle East and North African (MENA) countries view CBDCs as a solution for a host of money-related issues and, led by the UAE, are at various stages of CBDC development. Riyadh’s joining mBridge marks an important step towards the introduction of CBDCs for cross-border payments.

Impacts

• For poorer MENA countries, CBDCs could make banking and other financial services more widely available.
• Cross-border CBDCs such as mBridge should reduce payment costs and delays for oil exporters and eventually reduce the role of the US dollar.
• CBDCs could encourage more competition and innovation among domestic payment service providers by easing market entry.