Using Central Bank Digital Currency to Achieve the Sustainable Development Goals

Abstract

This chapter examines the role of the central bank digital currency (CBDC) in achieving the United Nations’ sustainable development goals (SDGs). Digitalisation is transforming the sustainable development landscape, and there is a need for central banks to play a major role in digital transformation for sustainable development. This topic is important to policymakers interested in how central bank innovation can help support SDGs’ realisation. This study is also relevant to researchers researching how a CBDC can be used to achieve SDGs. The author argued that a CBDC could unlock financing for each SDG, provide convenient access to capital and increase payment efficiency. CBDC can also increase the speed of transaction chains and provide greater capital efficiency for investment in sustainable development activities and projects. A CBDC can support realising the United Nations’ SDGs. Policymakers should ensure that the CBDC in their respective countries is designed to incorporate features that consider sustainable development concerns for attaining the United Nations’ SDGs. There has yet to be an attempt to assess how a CBDC can contribute to realising the United Nations’ SDGs. The literature needs to examine the opportunities CBDC presents for achieving SDGs.

Citation

Ozili, P.K. (2023), "Using Central Bank Digital Currency to Achieve the Sustainable Development Goals", Sood, K., Balusamy, B. and Grima, S. (Ed.) Digital Transformation, Strategic Resilience, Cyber Security and Risk Management (Contemporary Studies in Economic and Financial Analysis, Vol. 111C), Emerald Publishing Limited, Leeds, pp. 143-153. https://doi.org/10.1108/S1569-37592023000111C008