Could Central Bank Digital Currency Increase Financial Inclusion in the United States?

U.S. households rely on cash, money orders, and other paper-based mechanisms that can be costly and inconvenient. Central Bank Digital Currency, or CBDC, can provide a digital money alternative for unbanked consumers. CBDC can offer cash-like characteristics such as privacy, real-time settlement, finality of settlement and trust in the issuer. In this session, speakers share initial research results and upcoming work to explore the factors inhibiting access to mainstream electronic payment and account services, identify CBDC design features that could address these barriers and test the effectiveness of CBDC in increasing financial inclusion.